Apple Hospitality REIT, Inc. (APLE) is a publicly traded real estate investment trust (REIT) that owns one of the largest portfolios of upscale, select services hotels in the United States, rendering it one of the country's leading hospitality entities. Incorporated in Virginia in 2007 and trading on the New York Stock Exchange, Apple Hospitality's portfolio entails more than 230 hotels with roughly 30,000 rooms located in 88 markets throughout 34 states.
Apple Hospitality's properties majorly comprise Hilton and Marriott branded hotels which fall under the industry's upscale and upper-midscale segments. Some familiar brands include Hilton Garden Inn, Hampton, Home2 Suites, Courtyard, Residence Inn and Fairfield Inn and Suites. By focusing on these brands and segments, Apple Hospitality benefits from the various customer loyalty programs and the significant operational resources these global hotel chains deliver.
While Apple Hospitality engages in direct ownership and management of some hotels, the majority of their properties are instead managed by third-party hotel operators under long-term management agreements. Their unique business strategy relies on choosing institutions which demonstrate financial stability, growth potential, and geographic diversity. Hotels in their portfolio are often located in densely populated areas, close to a variety of demand generators such as business centers, tourist attractions, and key transportation hubs, contributing to consistent and stable occupancy rates.
Apple Hospitality strives to enhance the value of its portfolio through targeted capital improvement projects and sound operational practices, such as energy conservation and preventive maintenance programs. It also actively pursues acquisition opportunities in order to grow its portfolio and deliver superior returns to its shareholders.
Financially, Apple Hospitality has been designed for stability. As a REIT, by law, it is required to distribute at least 90% of its taxable income to shareholders as dividends. This has resulted in a history of strong dividend payments, making the company an attractive investment option for income-oriented investors. The company's conservative capital structure, lack of encumbering franchise agreements, and focus on operational efficiency also contribute to its financial stability. In the face of the prevailing trend of economic volatility, Apple Hospitality has consistently offered a resilient investment proposition, making it a standout player in the hospitality REIT space.