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Apple Hospitality REIT, Inc. (APLE) completed the acquisition of the 192-room Embassy Suites by Hilton South Jordan Salt Lake City for approximately $36.8 million. The hotel is ideally located in a thriving city with strong economic and population growth. The acquisition aims to enhance long-term shareholder value. Apple Hospitality has two additional hotels under contract for purchase, with revenue per available room in the Salt Lake City South, UT submarket improving by approximately 8%.
Positive
Acquisition of a well-located hotel with 192 rooms for approximately $36.8 million
Strong economic, employment, and population growth in the South Jordan area
Focus on enhancing long-term shareholder value
Improvement of approximately 8% in revenue per available room in the Salt Lake City South, UT submarket
Negative
None.
RICHMOND, Va.--(BUSINESS WIRE)--
Apple Hospitality REIT, Inc. (NYSE: APLE) (the “Company” or “Apple Hospitality”) today announced that it has completed the acquisition of the 192-room Embassy Suites by Hilton South Jordan Salt Lake City (the “Hotel”) for approximately $36.8 million, or $191,000 per key.
“We are pleased to expand our portfolio with the acquisition of this ideally located Embassy Suites by Hilton in South Jordan,” said Nelson Knight, President, Real Estate and Investments of Apple Hospitality. “South Jordan is a thriving, dynamic city in the Salt Lake City metropolitan area that has experienced strong economic, employment and population growth in recent years and is projected to see continued expansion well into the future. With its central location on the Wasatch Front, South Jordan offers easy access to a wide range of demand generators for business, leisure and group travel unique to Utah. As we continue to explore different opportunities, we remain focused on pursuing transactions that cultivate and refine our current portfolio and enhance long-term shareholder value. We have two additional hotels under contract for purchase and continue to underwrite numerous opportunities.”
The Embassy Suites South Jordan Salt Lake City opened in March 2018 and is located at 10333 South Jordan Gateway, South Jordan, Utah. The Hotel is located next to the Utah Transit Authority’s FrontRunner South Jordan Station and along Interstate 15, both of which provide direct access to downtown Salt Lake City and the Salt Lake City International Airport. In addition, the Hotel is convenient to The Shops at South Town, South Jordan Towne Center, America First Field, a variety of restaurants, performing arts venues, outdoor recreational spaces, and the Cottonwood Canyons ski areas. A part of the Silicon Slopes region, South Jordan continues to expand its robust community and is home to a diverse range of businesses, including technology, health care, distribution services and retail. According to data provided by STR for the trailing twelve months ended September 30, 2023, as compared to the same period of 2022, revenue per available room (“RevPAR”) for the Salt Lake City South, UT submarket improved by approximately 8%.
As previously announced, the Company continues to have two additional hotels under contract for purchase:
An Embassy Suites by Hilton currently under development in downtown Madison, Wisconsin, for an anticipated total purchase price of approximately $78.6 million with an expected 260 rooms, which the Company anticipates acquiring in mid-2024 following completion of construction.
A Motto by Hilton to be developed in downtown Nashville, Tennessee, for an anticipated total purchase price of approximately $96.7 million with an expected 256 rooms, which the Company anticipates acquiring in 2025 following completion of construction.
There are many conditions to closing on each of these hotels that have not yet been satisfied, and there can be no assurance that closings on these hotels will occur under the outstanding purchase contracts.
Following the acquisition of the Embassy Suites South Jordan Salt Lake City, the Apple Hospitality hotel portfolio includes 224 hotels with 29,601 guest rooms geographically diversified throughout 37 states.
About Apple Hospitality REIT, Inc.
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 224 hotels with more than 29,600 guest rooms located in 87 markets throughout 37 states as well as one property leased to third parties. Concentrated with industry-leading brands, the Company’s hotel portfolio consists of 99 Marriott-branded hotels, 120 Hilton-branded hotels and five Hyatt-branded hotels. For more information, please visit www.applehospitalityreit.com.
Forward-Looking Statements Disclaimer
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are typically identified by use of statements that include phrases such as “may,” “believe,” “expect,” “anticipate,” “intend,” “estimate,” “project,” “target,” “goal,” “plan,” “should,” “will,” “predict,” “potential,” “outlook,” “strategy,” and similar expressions that convey the uncertainty of future events or outcomes. Such statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements.
Such factors include, but are not limited to, the ability of the Company to effectively acquire and dispose of properties and redeploy proceeds; the anticipated timing and frequency of shareholder distributions; the ability of the Company to fund capital obligations; the ability of the Company to successfully integrate pending transactions and implement its operating strategy; changes in general political, economic and competitive conditions and specific market conditions (including the potential effects of inflation or a recessionary environment); reduced business and leisure travel due to geopolitical uncertainty, including terrorism, travel-related health concerns, including COVID-19 or other widespread outbreaks of infectious or contagious diseases in the U.S.; inclement weather conditions, including natural disasters such as hurricanes, earthquakes and wildfires; government shutdowns, airline strikes or other disruptions; adverse changes in the real estate and real estate capital markets; financing risks; changes in interest rates; litigation risks; regulatory proceedings or inquiries; and changes in laws or regulations or interpretations of current laws and regulations that impact the Company’s business, assets or classification as a REIT. Although the Company believes that the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and therefore there can be no assurance that such statements included in this press release will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the results or conditions described in such statements or the objectives and plans of the Company will be achieved. In addition, the Company’s qualification as a REIT involves the application of highly technical and complex provisions of the Internal Revenue Code of 1986, as amended. Readers should carefully review the risk factors described in the Company’s filings with the Securities and Exchange Commission, including but not limited to those discussed in the section titled “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022. Any forward-looking statement that the Company makes speaks only as of the date of this press release. The Company undertakes no obligation to publicly update or revise any forward-looking statements or cautionary factors, as a result of new information, future events, or otherwise, except as required by law.
