Capital intensity remains a significant drag on performance, with 2026Q1 capital expenditures of $35.8M consuming the majority of the $41.5M in generated AFFO.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 |
|---|
| Cash from Operations | 369.94M | 370.22M | 405.35M | 399.04M | 368.45M | 217.56M | 26.73M | 381.67M | 404.81M | 384.74M | 332.03M | 281.05M | 252.19M | 137.45M | 122.97M | 116.04M | 38.76M | 29.14M | 3.3M |
| Operating CF Growth % | -26.31% | -8.67% | 1.58% | 8.3% | 69.35% | 713.99% | -93% | -5.72% | 5.22% | 15.87% | 18.14% | 11.45% | 83.48% | 11.78% | 5.96% | 199.41% | 33.02% | 782.94% | - |
| Operating CF / Revenue % | 26.01% | 26.21% | 28.32% | 29.7% | 29.75% | 23.3% | 4.44% | 30.13% | 31.86% | 31.06% | 31.89% | 31.29% | 31.37% | 35.43% | 33.64% | 36.21% | 24.2% | 34.2% | 28.7% |
| Net Income | 171.84M | 175.36M | 214.06M | 177.49M | 144.81M | 18.83M | -173.21M | 171.92M | 206.09M | 182.49M | 144.65M | 117.29M | 6.83M | 115.22M | 75.48M | 69.99M | 16.26M | 16.85M | 2.2M |
| Depreciation & Amortization | 194.22M | 192.63M | 190.6M | 183.24M | 181.7M | 184.47M | 199.79M | 193.24M | 183.48M | 176.5M | 148.16M | 127.45M | 113.11M | 54.83M | 52.75M | 49.81M | 30.75M | 15.94M | 2.3M |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 3.5M | 0 | 7.8M | 0 | 3.6M | 6.2M | 3.5M | 4.7M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 3.14M | -412K | -8.33M | 14.35M | 33.04M | 17.44M | 3.1M | 5.97M | 10.96M | 36.7M | 12.37M | 35.73M | 129.24M | -32.99M | -1.67M | -5.8M | -5.8M | -4.41M | -100K |
| Working Capital Changes | 733K | 2.64M | 9.01M | 23.96M | 8.9M | -3.18M | -2.95M | 10.55M | 4.29M | -10.95M | 26.85M | 586K | 3M | 389K | -3.59M | 2.04M | -2.45M | 759K | -1.1M |
| Cash from Investing | -164.08M | -135.38M | -215.71M | -364.63M | -135.91M | -150.68M | -82.26M | -14.32M | -210.16M | -159.29M | -169.84M | -82.28M | -58.4M | 25.45M | 105.95M | -166.09M | -786.1M | -341.13M | -315.3M |
| Acquisitions (Net) | 397K | 0 | 0 | -1.18M | 0 | -893K | 476K | -1.23M | -151.28M | -164.26M | -93.59M | -224.63M | 0 | -7.22M | -18.02M | -160.25M | -740.74M | -325.08M | -315M |
| Purchase of Investments | 0 | 0 | 0 | 0 | -76.53M | -131.48M | -34.18M | 0 | -135.33M | -93.59M | -14.23M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Sale of Investments | 0 | 0 | 0 | 0 | 0 | 131.48M | 33.7M | 0 | 0 | 0 | 0 | 205.16M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Investing | -114.42M | -135.38M | -215.71M | -291.39M | 0 | -131.48M | -33.7M | 61.8M | -135.87M | -95.99M | -11.12M | -20.02M | 9.59M | 55.18M | 140.49M | -5.84M | -22.63M | -16.05M | 310.8M |
| Cash from Financing | -235.18M | -239.49M | -189.19M | -34.31M | -228.97M | -61.3M | 55.24M | -366.32M | -190.81M | -225.45M | -162.2M | -198.77M | -211.88M | -153.82M | -250.62M | -143.33M | 698.54M | 509.71M | 387.2M |
| Dividends Paid | -297.25M | -240.42M | -243.72M | -238.28M | -139.47M | -6.8M | -67.38M | -268.67M | -275.89M | -267.92M | -229.06M | -229.13M | -233.41M | -151.59M | -291.09M | -160.4M | -118.13M | -57.33M | 0 |
| Common Dividends | -228.74M | -228.52M | -243.72M | -238.28M | -139.47M | -6.8M | -67.38M | -268.67M | -275.89M | -267.92M | -229.06M | -229.13M | -233.41M | -151.59M | -291.09M | -160.4M | -118.13M | -57.33M | 0 |
| Debt Issuance (Net) | 0 | 1000K | 1000K | 1000K | -1000K | -1000K | 1000K | -1000K | 1000K | -1000K | 1000K | 1000K | 1000K | -1000K | 1000K | -1000K | -1000K | -754K | -218K |
| Share Repurchases | -31.57M | -62.81M | -35.13M | -6.88M | -2.94M | -3.35M | -14.71M | -4.33M | -105.83M | -692K | -9.33M | -237.57M | -2.35M | -19.99M | -51.99M | -39.17M | -7.46M | -2.6M | 400.8M |
| Other Financing | 62.68M | -4.02M | -8.62M | -8.51M | -10.23M | -1.59M | -2.67M | -1.61M | -2.33M | 131.18M | -4.22M | -7.05M | -4.9M | -445K | -728K | -410K | -594K | -300K | -12.99M |
| Net Change in Cash | -29.32M | -4.65M | 449K | 106K | 3.56M | 5.58M | -293K | 1.03M | 3.84M | 366K | 0 | 0 | -211.88M | 9.07M | -21.71M | -193.38M | -48.8M | 197.72M | 75.18M |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -193.78M | 0 | 0 | 0 | 0 | 0 | -20K |
| Cash at Beginning | 39.42M | 44.07M | 43.62M | 43.51M | 39.95M | 34.37M | 34.66M | 33.63M | 29.79M | 29.43M | 0 | 0 | 18.1M | 9.03M | 30.73M | 224.11M | 272.91M | 75.19M | 20K |
| Cash at End | 20.78M | 39.42M | 44.07M | 43.62M | 43.51M | 39.95M | 34.37M | 34.66M | 33.63M | 29.79M | 0 | 0 | -193.78M | 18.1M | 9.03M | 30.73M | 224.11M | 272.91M | 75.2M |
| Free Cash Flow | 319.88M | 282.81M | 325.01M | 326.98M | 309.07M | 199.25M | -21.83M | 306.78M | 330.52M | 321.44M | 266.91M | 218.79M | 184.2M | 114.94M | 106.44M | 116.04M | 16.02M | 29.14M | -307.8M |
| FCF Growth % | -16.5% | -12.98% | -0.6% | 5.79% | 55.12% | 1012.69% | -107.12% | -7.18% | 2.83% | 20.43% | 21.99% | 18.78% | 60.25% | 7.99% | -8.28% | 624.28% | -45.01% | 109.47% | - |
| FCF / Revenue % | 22.49% | 20.02% | 22.7% | 24.33% | 24.96% | 21.34% | -3.63% | 24.22% | 26.01% | 25.95% | 25.64% | 24.36% | 22.91% | 29.62% | 29.11% | 36.21% | 10.01% | 34.2% | -2676.52% |
Softening domestic travel demand
As reported in recent financial statements, APLE's dividend payout ratio relative to AFFO has fluctuated significantly, reaching a high of 1.28 in 2025Q3, which suggests that the company occasionally relies on balance sheet liquidity to sustain distributions during periods of elevated capital expenditure requirements.
The inconsistency in dividend coverage indicates that AFFO is not always sufficient to support current distribution levels after accounting for necessary property-level reinvestment. Investors should monitor whether the company's reliance on cash reserves to bridge this gap becomes a structural trend rather than a seasonal anomaly.
Based on the provided quarterly data, the company consistently allocates significant capital to maintenance and brand-mandated improvements, with 2026Q1 capital expenditures of $35.8M representing a substantial drag on the $41.5M of generated AFFO, highlighting the high cost of maintaining upscale select-service assets.
The recurring nature of these expenditures suggests that the company faces a perpetual 'CapEx treadmill' to satisfy Marriott and Hilton brand standards. This ongoing requirement limits the amount of true free cash flow available for organic growth or debt reduction, potentially capping the upside for shareholders.
According to historical filings, the divergence between GAAP Net Income and FFO remains pronounced, with FFO/NI ratios frequently exceeding 2.0x, which confirms that non-cash depreciation charges significantly distort the company's reported profitability and obscure the actual cash-generating capacity of the hotel portfolio.
This structural distortion necessitates a focus on AFFO as the primary metric for evaluating performance, as GAAP earnings fail to capture the economic reality of asset aging. The reliance on FFO/AFFO metrics is essential to avoid overestimating the company's ability to fund operations through internal cash generation.
As indicated by the provided cash flow tables, the relationship between GAAP operating cash flow and FFO is inconsistent, with periods like 2025Q1 showing FFO of $79.2M against OCF of $49.1M, suggesting that working capital swings and non-cash adjustments create meaningful noise in cash flow reporting.
The lack of a stable conversion ratio implies that investors should be cautious when using OCF as a proxy for operational health. The volatility in these figures appears to reflect the complex interplay between hotel-level revenue recognition and the timing of corporate-level cash outflows.
Quick answers to the most common questions about buying APLE stock.
Apple Hospitality REIT, Inc. (APLE) generated $370.2M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Apple Hospitality REIT, Inc. (APLE) generated $282.8M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Apple Hospitality REIT, Inc. (APLE) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Apple Hospitality REIT, Inc. (APLE) returned $240.4M to shareholders via cash dividends and spent $62.8M on share repurchases. This shows the company's commitment to returning capital to its equity investors.