3 models fit Apple Hospitality REIT Inc. Common Shares and they disagree: 0 of 3 land within 15% of the average.
Two or more of our models back this value.
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Valued as a REIT (property company): Price to FFO, Dividend discount, and EV/EBITDA comparison.
ACCE opinionApple Hospitality REIT Inc. Common Shares (APLE)
Fair value (3 models)
$14.80
ACCE price target
$17.00
Rating
Overvalued
Horizon
12 months
Fair value published on 20 Oct 2026, 14:06 CEST; previously $14.99 since 15 Oct 2026, 00:00 CEST.
ACCE price target published on 11 Oct 2026, 00:00 CEST.
Rating published on 20 Oct 2026, 14:06 CEST.
Price used: $18.04 at the close on 23 Oct 2026, 22:00 CEST.
Models: EV/EBITDA comparison, Dividend discount, and Price to FFO.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
21.9% above
-18.0% to fair value
ACCE score
68
out of 100
Analysts
27% buy
11 covering
P/E
24.4x
forward 24.1x
1-year return
+54.7%
Dividend yield
5.29%
Apple Hospitality REIT Inc. Common Shares in four questions
Plain answers, details below
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Overview
ACCE thesis
Apple Hospitality REIT owns and operates a portfolio of select-service hotels, mostly under Marriott and Hilton flags such as Residence Inn, Courtyard and Hampton Inn, and it earns its revenue from room rentals and hotel operations across the US. The structural case rests on that footprint: a diversified, mostly limited-service portfolio that has held up well as business and leisure travel normalized, with revenue growing 4.7% and a 22.4% operating margin. The near-term driver is continued recovery in demand and rate growth at those hotels, which the 4.7% top-line figure only partly reflects. At a 22.8x trailing P/E and 23.5x forward, the stock is not cheap for a REIT with a 5.5% return on equity, so the question is whether operating growth can lift earnings enough to justify that multiple. The score of 68/100 and the lack of index membership suggest the name is under the radar, which may be worth a closer look at the hotel-level RevPAR and margin trends.
⚠ Investor warnings · 3 flagsAI-assisted·How I use AI
moderate
Heavy short interest
Short interest stands at 12.9%, meaning a sizeable slice of the float is betting against the shares. That raises volatility, and it cuts both ways if the thesis is wrong.
moderate
Thin earnings growth
Revenue grew 4.7% and earnings 4.6% year on year, well below the 18.6% five-year revenue CAGR. Recent growth has slowed sharply from its longer-run pace.
moderate
Stock trades above model fair value
The price sits 21.9% above the model fair value of $14.80, and 6.1% above the ACCE price target of $17.00. Little valuation cushion remains if fundamentals soften.
AI research notes
AI-assisted·How I use AIWritten Oct 20, 2026 · figures from 2026-10-20 · prices to Oct 23, 2026
Why it could do well
Free cash flow over the last twelve months reached $283M, giving a 7.0% free cash flow yield at the current price.
The dividend yield stands at 5.7%, so income investors are paid well while they wait for the share price to move.
The latest quarter beat expectations, with earnings per share of 0.52 against 0.50 expected, a 4.0% surprise.
Why it could disappoint
Return on invested capital is only 2.9%, a thin return on the money the company has put to work in its hotels.
The model fair value of $14.80 sits 21.9% below the share price, and all three valuation models point the same way.
Only 27% of analysts rate the stock Buy or Strong Buy, with 3 of 11 in that camp, a weak level of conviction.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Nov 5, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
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Valuation
INVESTOR
Where APLE's valuation models land
Price
$18.04
Model fair value
$14.80
Model range
$6.70 to $20.19
Fair value $14.80
Price $18.04
The price sits inside the model range.
Model
Fair value
Upside
Dividend discount
EV/EBITDA comparison
Price to FFO
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Quality
INVESTOR
Quality and conviction INVESTOR FEATURE
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+Conviction breakdown and growth / value / quality / momentum scores