Apple Hospitality REIT, Inc. (NYSE: APLE) right this moment introduced the acquisition of the 234-room AC Lodge by Marriott Washington DC Conference Middle for about $116.8 million, or $499,000 per key.
“We’re happy to broaden our portfolio with the acquisition of the AC Lodge Washington DC Conference Middle and are thrilled to determine a presence in downtown Washington, D.C., a market we have now tracked and wished to have a presence in for a while,” mentioned Nelson Knight, President, Actual Property and Investments of Apple Hospitality. “With all kinds of demand turbines, together with authorities, company, conventions, sporting occasions and live shows in addition to each home and inbound worldwide leisure, we’re assured Washington, D.C. is nicely positioned for continued progress. As we search for and proceed to underwrite acquisition alternatives, we’re devoted to pursuing transactions that meaningfully improve our portfolio and maximize long-term worth for our shareholders.”
The AC Lodge Washington DC Conference Middle opened in October 2020 and is positioned at 601 Ok Road NW, Washington, D.C. Ideally located within the coronary heart of downtown, the Lodge provides premium facilities, together with comfy, trendy visitor rooms; a 1,500 square-foot, state-of-the-art health middle; a rooftop bar and restaurant with gorgeous views of town; and floor flooring retail area. Along with being LEED Licensed, the Lodge was constructed with a inexperienced roof system. The Lodge is one block from the Walter E. Washington Conference Middle and handy to quite a few points of interest, together with Capital One Enviornment, the U.S. Capitol Complicated, performing arts venues, historic monuments and memorials, and the world-renowned Smithsonian museums and galleries, making it interesting to all kinds of enterprise, leisure and group vacationers. In accordance with knowledge supplied by STR for the trailing twelve months ended December 31, 2023, as in comparison with the identical interval of 2022, income per obtainable room (“RevPAR”) for the Washington DC CBD submarket improved by roughly 21%.
As beforehand introduced, the Firm continues to have two further inns underneath contract for buy:
- An Embassy Suites by Hilton presently underneath improvement in downtown Madison, Wisconsin, for an anticipated whole buy value of roughly $79.3 million with an anticipated 262 rooms, which the Firm anticipates buying in mid-2024 following completion of building.
- A Motto by Hilton to be developed in downtown Nashville, Tennessee, for an anticipated whole buy value of roughly $98.2 million with an anticipated 260 rooms, which the Firm anticipates buying in late 2025 following completion of building.
There are lots of situations to closing on every of those inns that haven’t but been glad, and there will be no assurance that closings on these inns will happen underneath the excellent buy contracts.
Following the acquisition of the AC Lodge Washington DC Conference Middle, the Apple Hospitality resort portfolio contains 224 inns with 29,886 visitor rooms geographically diversified all through 37 states and the District of Columbia.