Apple Hospitality REIT, Inc. APLE

Competitive advantage analysis · real-estate

REIT Specialized
Overall moat score
94/100
Strong

About Apple Hospitality REIT, Inc.

Apple Hospitality REIT, Inc. is a publicly traded real estate investment trust that owns largest and most diverse portfolios of upscale, rooms-focused hotels in the United States. Apple Hospitality's portfolio consists of 217 hotels with approximately 29,600 guest rooms located in 84 markets throughout 37 states and the District of Columbia. Concentrating with industry-leading brands, the Company's hotel portfolio consists … Full APLE analysis →

Competitive advantage assessment

Key strengths

  • Strong NOI Margins NOI margins are strong (score 0.97), demonstrating rent pricing power.
  • Stable NOI Performance NOI stability is excellent (score 0.97), suggesting reliable rent streams.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Rent Pricing Power

Strong
97

Where APLE ranks in REIT - Hotel & Motel

Apple Hospitality REIT, Inc. ranks #1 of 19 scored companies in REIT - Hotel & Motel by moat score — the top 5%. That makes it the widest moat in the group.

Moat scores for companies ranked near APLE in REIT - Hotel & Motel
# Company Moat score Rating
1 Apple Hospitality REIT, Inc. APLE 94/100 Strong
2 Chatham Lodging Trust (REIT) CLDT 80/100 Strong
3 Host Hotels & Resorts, Inc. HST 69/100 Moderate
4 RLJ Lodging Trust RLJ 68/100 Moderate
5 Service Properties Trust - Shar SVC 66/100 Moderate
6 Diamondrock Hospitality Company DRH 66/100 Moderate
7 Ryman Hospitality Properties, I RHP 63/100 Moderate
8 Xenia Hotels & Resorts, Inc. XHR 59/100 Moderate
9 Summit Hotel Properties, Inc. INN 58/100 Moderate

See every Real Estate Investment Trusts company ranked by moat score →

How APLE scores on the REIT Specialized defenses

Rent Pricing Power

Score 97 · 20% of the moat score

For a REIT, pricing power is the ability to raise rents at renewal and still keep the space occupied.

AFFO Strength

Score 96 · 18% of the moat score

AFFO — adjusted funds from operations — is the cash a REIT can actually distribute after the recurring capital spending buildings need in order to stay leasable.

Balance Sheet & Cost of Capital

Score 90 · 20% of the moat score

Real estate is bought with borrowed money, so a REIT's cost of capital is its competitive advantage.

Capital Recycling & Growth

Score 91 · 16% of the moat score

REITs grow by issuing shares and debt to buy more property, which creates value only when the yield on the asset exceeds the cost of the capital raised.

Operational Efficiency

Score 98 · 14% of the moat score

Running property — leasing, maintenance, taxes, management — is the part of the business a REIT genuinely controls.

Portfolio Quality & Diversification

Score 93 · 12% of the moat score

Portfolio quality is really a question about what happens when a tenant fails.

How each REIT Specialized defense is measured, in full →

Understanding APLE's moat

What is Apple Hospitality REIT, Inc.'s moat score?

Apple Hospitality REIT, Inc. (APLE) scores 94 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as strong. It ranks #1 of 19 scored companies in REIT - Hotel & Motel, the top 5%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 29 companies in REIT - Hotel & Motel. Its strongest defense is Operational Efficiency (98/100) and its weakest is Balance Sheet & Cost of Capital (90/100).

How does Apple Hospitality REIT, Inc. compare with other REIT - Hotel & Motel companies?

Apple Hospitality REIT, Inc. ranks #1 of 19 scored companies in REIT - Hotel & Motel by moat score. That is the widest moat in REIT - Hotel & Motel. The companies ranked closest are Chatham Lodging Trust (REIT) (CLDT) at 80 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — REIT Specialized in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 29 companies in REIT - Hotel & Motel. The defenses are then weighted to produce the overall score out of 100.

Why is Apple Hospitality REIT, Inc. scored with the REIT Specialized template?

A REIT is a portfolio of buildings financed with debt and required to distribute most of its taxable income. Reported earnings are dominated by depreciation on assets that often appreciate, so net income says very little; the real question is how much cash the properties distribute, and how securely. The REIT template scores what determines that: rent pricing, distributable cash, cost of capital, and the discipline behind growth.

Which competitive defenses are measured for Apple Hospitality REIT, Inc.?

The REIT Specialized template measures 6 defenses, and APLE scores: Rent Pricing Power (97), AFFO Strength (96), Balance Sheet & Cost of Capital (90), Capital Recycling & Growth (91), Operational Efficiency (98), Portfolio Quality & Diversification (93). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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