Just noticed Nokomis Capital picked up nearly 480k shares of Apple Hospitality REIT for around $5.68 million back in February. Interesting move considering the stock's down 13.6% over the past year, but I guess they're betting on something.

The fund's basically saying hotel demand is holding steady with Marriott and Hilton brands pulling their weight. Makes sense when you think about it — these upscale branded hotels have loyalty programs and reservation networks that keep rooms booked. Plus, unlike apartments with long-term leases, hotels reset pricing every single night based on demand, which is wild when you think about how much leverage that gives you in a strong travel market.

Their portfolio's spread across 235 hotels in 34 states, mostly under Marriott and Hilton, generating revenue through room rentals. The key metric everyone's watching is RevPAR — revenue per available room — which basically tells you if occupancy and room rates can stay resilient. Given how much the industry bounced back post-2020 and the brand power behind these properties, there's definitely something there. That said, hotel earnings are still pretty tied to travel cycles, so it's not a slam dunk.

The position makes up 1.35% of their AUM, so not a massive bet but worth keeping an eye on. Current share price sitting around $12.29 with a 7.88% dividend yield. Could be smart if travel demand holds, but timing the hospitality sector is tricky — depends on whether we're past the recovery phase or if there's more upside.