Apple Hospitality REIT 9M net income rises 19%, margins expand

Overview

• US hotel REIT's 9M net income rose yr/yr, operating income up 4.9%

• Comparable Hotels Adjusted Hotel EBITDA margin expanded by 210 bps to 37.1% in Q3

• Company says Q3 growth driven by broad-based business and leisure travel demand

Outlook

• Apple Hospitality raises 2026 net income outlook to $177 mln-$192 mln

• Company expects 2026 Comparable Hotels RevPAR to rise 5.1%-6.1%

• Apple Hospitality forecasts 2026 Adjusted EBITDAre of $482 mln-$493 mln

Result Drivers

• TRAVEL DEMAND - Co said increased business and leisure travel drove higher RevPAR in Q3

• OPERATING EFFICIENCY - Co attributed margin expansion to efficient operating model and asset management

Company press release: ID:nBw5x1YLLa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 8 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the specialized reits peer group is "buy."

• Wall Street's median 12-month price target for Apple Hospitality REIT Inc is $18.00, about 4.4% below its November 4 closing price of $18.82

• The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 20 three months ago

Reuters Recommended Reads

• Nov 4 - RLJ Lodging Trust Q3 revenue beats estimates driven by strong business, leisure travel bookings

• Nov 4 - Host Hotels Q3 revenue slightly misses estimates; raises RevPAR outlook

• Nov 5 - Chatham Lodging Trust Q3 RevPAR rises to record high on Silicon Valley hotels growth

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)