BofA Downgrades Apple Hospitality REIT (APLE) to Neutral, Lowers Price Target to $11.50

Core Insights - Apple Hospitality REIT, Inc. (NYSE:APLE) has been downgraded by BofA from Buy to Neutral, with a new price target set at $11.50, down from $15, due to concerns over market softness and a K-shaped recovery affecting corporate demand [2] - The company's Q3 2025 performance showed a decline in key metrics, with occupancy at 76%, ADR at $163, and RevPAR at $124, all reflecting year-over-year decreases [3] - Revenue for Q3 2025 was reported at $373.88 million, a 1.3% decline from Q3 2024, but it exceeded analysts' estimates by $3 million [4] Company Performance - Comparable Hotels experienced a 1.2% decrease in occupancy and a 0.6% decrease in ADR compared to the previous year, with RevPAR down 1.8% [3] - The government shutdown is estimated to have contributed to a 3% year-over-year decline in Comparable Hotels RevPAR in October 2025 [3] - The company has engaged in asset management activities, selling three non-core assets for $37 million and acquiring a property for approximately $19 million [4] Shareholder Returns - Apple Hospitality REIT repurchased 3.8 million shares for about $48 million and distributed $202 million to shareholders [4] - Over $50 million was reinvested in portfolio improvements during the year [4]