Is Apple Hospitality REIT a Buy?
Owning hotels is a tough business even in the good times, since the effective lease length of a room is a single day. However, Apple Hospitality (NYSE: APLE) believes it has a business model that sets it apart from the pack. Here's a quick look at that model, and what it has done for the real estate investment trust (REIT) and investors in the face of COVID-19.
Apple Hospitality owns 230 hotels containing nearly 30,000 guest rooms. The real estate investment trust's portfolio spans across 34 states and nearly 90 submarkets. The hotels it owns are operated under 12 different banners, including key Marriott and Hilton nameplates, and run by third parties not directly controlled by those brands. Its properties tend to be higher-end fare meant to provide a place to sleep, not a vacation experience like a resort. The average age of the company's portfolio is roughly four years, with 97% of its properties either built or renovated in the last eight years.
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Source Fool.com
