Apple Hospitality REIT, Inc.: 2Q26 Takeaways; Solid 2Q, but Management Remains Measured on the Back Half; Stay Neutral; PT $16

研报英文原文证据摘录

J P M O R G A N

North America Equity Research

07 August 2026

Apple Hospitality REIT, Inc.

2Q26 Takeaways; Solid 2Q, but Management Remains

Measured on the Back Half; Stay Neutral; PT $16

APLE’s 2Q EBITDA and RevPAR results beat our/Street estimates, and the

company raised its FY26 guidance to reflect 2Q upside and a strong 2H. Similar

to Lodging REIT peers, APLE underperformed on its earnings day (-3.4% vs. SPX

-0.2%), which we attribute to APLE’s 2H implied guide falling short of potentially

lofty buy-side expectations. We think expectations were driven higher in recent

weeks given the strong RevPAR environment that persisted through July (APLE

July RevPAR +5.5%) and sustained momentum in US travel spending. APLE’s 2H

implied EBITDA guide of $220m (MP) is in-line w/ the Street, though per mgmt:

“could continue to prove conservative”.

While we remain constructive on APLE’s near-term fundamentals (we forecast

FY26 adj. EBITDAre at the high-end of guide), there is limited visibility to

underwrite meaningful RevPAR growth in 2027/2028 and we remain cautious on

potential cost inflation impacting margins (FY26 total opex guide now +4% y/y vs.

last quarter’s guide +3%). We believe the solid near-term setup is already reflected,

with APLE’s YTD performance +35% vs. SPX +13%. APLE trades at ~11x 2027E

EV/EBITDA, in-line w/ its LT average, and thus we view the stock as fairly valued

here. We stay Neutral and keep our PT at $16.

Key takes from EPS call/mgmt callback. (1) Management sees demand

growth widespread across its portfolio, noting “broad-based” demand seven

times on the earnings call. (2) World Cup contributed ~50 bps to 2Q RevPAR

+5.3%; (3) APLE continues to see potential upside in 4Q driven by easier

government comparisons, though is “not fully reflected at the MP of guide”. (4)

The upcoming renovation/rebranding of APLE’s Seattle Lake Union hotel will

take place from 4Q26-1Q27 and there could be some disruption (one of

APLE’s larger/higher EBITDA-producing hotels). (5) Midweek occupancy

improved during 2Q and ADR was also higher.

Transaction market. APLE continues to describe the transaction market as

…