Why Apple Hospitality REIT Jumped Over 10% on Wednesday
Shares of hotel-focused real estate investment trust Apple Hospitality REIT (NYSE: APLE) rose sharply at the start of trading on Wednesday. Early gains peaked at around 11%, with the stock falling back to a roughly 6% advance by 11 a.m. EDT. There was no specific news out of the company, so investors are likely focusing on the big picture.
The effort to contain the spread of COVID-19 involves social distancing and the shutting of nonessential businesses. The U.S. economy came to a screeching halt. Hotels, even if they kept their doors open to guests, were effectively shut down as people chose to stay home, large events were canceled, and businesses curtailed travel. Apple was no different from any other hotel owner here, noting in its first-quarter 2020 earnings release that occupancy fell from 76% at the end of February to less than 20% by the end of March. Apple stopped paying its monthly dividend in March.
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Source Fool.com
