Analyst Dori Kesten of Wells Fargo maintained a Hold rating on Apple Hospitality REIT (APLE – Research Report), retaining the price target of $16.00.
Dori Kesten has given his Hold rating due to a combination of factors related to Apple Hospitality REIT’s recent financial performance and future expectations. The company’s Q4 results showed a positive performance with FFO per share and adjusted EBITDA surpassing consensus estimates, but the anticipated EBITDA for 2025 is projected to be 3% below consensus due to rising expenses.
While the RevPAR growth for 2025 aligns with expectations, the increase in expenses, particularly fixed costs, is expected to impact profitability. Additionally, the company’s capital allocation strategy, including share repurchases and hotel dispositions, suggests a cautious approach to growth. These factors combined lead to a Hold rating, indicating a balanced view of potential risks and rewards for investors.