Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 3 stocks made the list for top value stocks in the Hotel & Resort REITs industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.

Why Focus on Undervalued Hotel & Resort REITs Stocks?

Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.

AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

What Goes Into AAII’s Value Grade?

Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.

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3 Undervalued Hotel & Resort REITs Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 3 undervalued stocks in the Hotel & Resort REITs industry for Wednesday, November 19, 2025. Let’s take a closer look at their individual scores to see how they measure up against each other and the Hotel & Resort REITs industry median.

The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.

The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)

Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).

As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.

Apple Hospitality REIT, Inc.’s Value Grade

Value Grade:

Apple Hospitality REIT, Inc. (NYSE: APLE) is a publicly traded real estate investment trust (“REIT”) that owns one of the largest and most diverse portfolios of upscale, rooms-focused hotels in the United States. Apple Hospitality’s portfolio consists of 220 hotels with approximately 29,700 guest rooms located in 85 markets throughout 37 states and the District of Columbia. Concentrated with industry-leading brands, the Company’s hotel portfolio consists of 96 Marriott-branded hotels, 118 Hilton-branded hotels, five Hyatt-branded hotels and one independent hotel.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Apple Hospitality REIT, Inc. has a Value Score of 76, which is considered to be undervalued.

When you look at Apple Hospitality REIT, Inc.’s price-to-sales ratio at 1.95 compared to the industry median at 1.06, this company has a higher price relative to revenue compared to its peers. This could make Apple Hospitality REIT, Inc.’s stock less attractive for value investors.

Apple Hospitality REIT, Inc.’s price-earnings ratio is 15.70 compared to the industry median at 29.50. This means it has a lower share price relative to earnings compared to its peers. This could make Apple Hospitality REIT, Inc. more attractive for value investors.

Now, let’s assess Apple Hospitality REIT, Inc.’s EV/EBITDA ratio, also known as enterprise multiple. At 10.6, when compared to the industry median of 12.3, the company may be considered undervalued in relation to its peers. Value investors could use the enterprise multiple to identify stocks that are considered overvalued or undervalued relative to their industry.

Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. Apple Hospitality REIT, Inc.’s shareholder yield is higher than its industry median ratio of 5.50%. Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.

As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. Apple Hospitality REIT, Inc.’s price-to-book ratio is higher than its industry median ratio of 0.85. This could make Apple Hospitality REIT, Inc. less attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Apple Hospitality REIT, Inc.’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Apple Hospitality REIT, Inc.’s price-to-free-cash-flow ratio is higher than its industry median ratio of 17.70. This could make Apple Hospitality REIT, Inc. less attractive because the higher P/FCF ratio indicates that Apple Hospitality REIT, Inc. is undervalued. The P/FCF ratio metric can also be viewed over a long-term time frame to see if the company's cash flow to share price value is generally improving or worsening.

DiamondRock Hospitality Company’s Value Grade

Value Grade:

DiamondRock Hospitality Company is a self-advised real estate investment trust (REIT) that is an owner of a leading portfolio of geographically diversified hotels concentrated in leisure destinations and top gateway markets. The Company currently owns 36 premium quality hotels with approximately 9,600 rooms. The Company has strategically positioned its portfolio to be operated both under leading global brand families as well as independent boutique hotels in the lifestyle segment.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

DiamondRock Hospitality Company has a Value Score of 65, which is considered to be undervalued.

DiamondRock Hospitality Company’s price-earnings ratio is 34.3 compared to the industry median at 29.5. This means that it has a higher price relative to its earnings compared to its peers. This makes DiamondRock Hospitality Company less attractive for value investors.

DiamondRock Hospitality Company’s price-to-book ratio is lower than its peers. This could make DiamondRock Hospitality Company more attractive for value investors when compared to the industry median at 0.85.

You can read more about DiamondRock Hospitality Company’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

RLJ Lodging Trust’s Value Grade

Value Grade:

RLJ Lodging Trust ("RLJ") is a self-advised, publicly traded real estate investment trust that owns 94 premium-branded, rooms-oriented, high-margin, urban-centric hotels located within the heart of demand locations. Our hotels are geographically diverse and concentrated in major urban markets that provide multiple demand generators from business, leisure, and other travelers.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

RLJ Lodging Trust has a Value Score of 80, which is considered to be undervalued.

RLJ Lodging Trust’s price-earnings ratio is 167.3 compared to the industry median at 29.5. This means that it has a higher price relative to its earnings compared to its peers. This makes RLJ Lodging Trust less attractive for value investors.

RLJ Lodging Trust’s price-to-book ratio is higher than its peers. This could make RLJ Lodging Trust less attractive for value investors when compared to the industry median at 0.85.

You can read more about RLJ Lodging Trust’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Other Hotel & Resort REITs Stock Grades

Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.

Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Hotel & Resort REITs stocks as well as other industrys.

Choosing Which of the 3 Best Hotel & Resort REITs Stocks Is Right for You

Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.

• Apple Hospitality REIT, Inc. stock has a Value Grade of B.
• DiamondRock Hospitality Company stock has a Value Grade of B.
• RLJ Lodging Trust stock has a Value Grade of B.

Now that you have a bit more background about each of the 3 undervalued stocks in the Hotel & Resort REITs industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.

We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.

A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Additional Resources About Hotel & Resort REITs Stocks

Want to learn more about Hotel & Resort REITs stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.

• 3 Undervalued Hotel & Resort REITs Stocks for Monday, November 17
• 3 Undervalued Hotel & Resort REITs Stocks for Friday, November 14
• 3 Undervalued Hotel & Resort REITs Stocks for Wednesday, November 12
• 3 Undervalued Hotel & Resort REITs Stocks for Friday, November 07

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith and we accept no liability for any errors or omissions. The full disclaimer can be read here.