PK - Apple Hospitality: Its Recovery Has Removed Any Opportunity
2024-06-21 00:32:13 ET
Summary
- Apple Hospitality owns and manages hotels nationwide, with a portfolio of 224 hotels in 37 states and D.C.
- The REIT has recovered from the impact of Covid, offers good exposure to the hotel industry, and has low leverage and strong liquidity.
- However, the dividend yield is not high enough to offset a potential opportunity cost and the distribution is near the pre-pandemic level without any indication it can grow past that.
- Moreover, the shares are not undervalued to provide a margin of safety.
- One of its peers seems to be a better addition to a dividend portfolio with greater potential.
Apple Hospitality REIT, Inc. ( APLE ), incorporated in 2007 and headquartered in Richmond, VA, owns and manages hotels all over the country....
Apple Hospitality: Its Recovery Has Removed Any Opportunity