Apple Hospitality: Its Recovery Has Removed Any Opportunity

Summary

• Apple Hospitality owns and manages hotels nationwide, with a portfolio of 224 hotels in 37 states and D.C.
• The REIT has recovered from the impact of Covid, offers good exposure to the hotel industry, and has low leverage and strong liquidity.
• However, the dividend yield is not high enough to offset a potential opportunity cost and the distribution is near the pre-pandemic level without any indication it can grow past that.
• Moreover, the shares are not undervalued to provide a margin of safety.
• One of its peers seems to be a better addition to a dividend portfolio with greater potential.

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Apple Hospitality REIT, Inc. (NYSE:APLE), incorporated in 2007 and headquartered in Richmond, VA, owns and manages hotels all over the country.

This is a well-diversified REIT with a sustainable dividend as far as its dividend

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.