Another Dividend-Paying Hotel And Motel REIT Hits New 12-Month High

Apple Hospitality REIT Inc. APLE is a hotel and motel real estate investment trust hitting new highs this week. 

On Feb. 2, following the Federal Reserve’s announcement that the funds rate would go up by 0.25% rather than 0.5%), the markets rallied, REITs rallied and so did Apple Hospitality.

Based in Richmond, Virginia, the company, has a portfolio of 220 hotels with nearly 29,000 rooms in 87 markets across 37 states. Its portfolio includes 96 Marriott-branded hotels, 119 Hiltons, four Hyatts and one independent hotel.

The REIT looks for hotels providing business and leisure travel accommodations such as its Homewood Suites in Birmingham, Alabama; Courtyard by Marriott in Phoenix; Residence Inn in Burbank, California; and Hampton Inn in San Diego. 

With a market capitalization of $4.05 billion, the REIT is trading with a price-earnings ratio of 26 and at 1.26 times its book value. Shareholder equity exceeds the amount of long-term debt. Earnings for 2022 showed a 110% increase. The record for the past five years shows earnings declined by 35%.

Apple Hospitality is actively traded on the New York Stock Exchange with an average daily volume of 1.39 million shares.

The REIT pays a dividend of 5.37%.

The daily price chart is here:

You can see the new high and how this real estate investment trust bottomed in October and rallied, with a few ups and downs, from there. It’s positive that the price remains above both the 50-day moving average (the blue line) and the 200-day moving average (the red line). 

The weekly price chart looks like this:

Note how the price is breaking above the early 2022 highs and is on its fourth straight week of gains. Apple Hospitality bottomed on this chart in March and April, 2020 during the COVID-19 pandemic. It hasn’t been straight up from there, but the crossover of the 200-week moving average by the 50-week moving average in September 2021 is notable. That the 200-week moving average appears to be trending upward again, however slightly, ought to be considered a positive for the REIT.

Not investment advice. For educational purposes only. 

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