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To own Apple Hospitality REIT, you need to be comfortable with an income-focused, rooms-heavy hotel portfolio that tends to move with U.S. travel demand and financing conditions. The Motto by Hilton Nashville Downtown acquisition fits that story by adding an upscale, rooms-focused asset in a strong leisure and event market, but it does not materially change the near term picture where softer earnings trends and higher debt costs remain the key catalyst and risk to watch.
Among recent announcements, the board’s decision to maintain the regular US$0.08 monthly cash distribution stands out in light of the Nashville deal. Holding the dividend steady while adding a newly built, high-cost downtown property keeps the focus on cash flow stability as a short term catalyst, but it also puts more attention on how well newer acquisitions support that payout if travel or pricing weaken from here.
Yet investors should also be aware that concentrated exposure to specific upscale segments and markets could become a problem if local demand softens and ...
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Apple Hospitality REIT's narrative projects $1.5 billion revenue and $179.3 million earnings by 2028. This requires 1.7% yearly revenue growth and an earnings decrease of $1.7 million from $181.0 million today.
Uncover how Apple Hospitality REIT's forecasts yield a $13.00 fair value, a 8% upside to its current price.
Four members of the Simply Wall St Community currently place Apple Hospitality’s fair value between US$13.00 and about US$16.61 per share, showing a wide valuation spread. When you set those views against the risk that higher for longer interest rates could keep refinancing and renovation costs elevated, it underlines why many investors are comparing several perspectives before deciding how much of Apple Hospitality’s earnings resilience they really want to rely on.
Explore 4 other fair value estimates on Apple Hospitality REIT - why the stock might be worth as much as 37% more than the current price!
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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