RICHMOND, Va.–Apple Hospitality REIT, Inc. (NYSE: APLE) (the “Company” or “Apple Hospitality”) today announced the opening and acquisition of the 262-room Embassy Suites by Hilton Madison Downtown (the “Hotel”) for approximately $79.5 million, or $303,000 per key.
“We are pleased to expand our portfolio with the acquisition of the newly constructed, custom Embassy Suites Madison Downtown and increase our presence within the dynamic and business-friendly Madison market,” said Nelson Knight, President, Real Estate and Investments of Apple Hospitality. “Through our longstanding relationship with one of the industry’s leading and most trusted developers, we secured a fixed-price, take-out contract ahead of development, enabling us to acquire this Hotel at an attractive price despite rising construction costs over the course of development. Ideally located in the heart of downtown Madison, we are confident the Hotel is well positioned to serve the city’s wide variety of business and leisure travelers.”
The newly built Embassy Suites Madison Downtown is located at 231 South Pinckney Street, Madison, Wisconsin. The Hotel is a short walk from Monona Terrace Community and Convention Center and the Wisconsin State Capitol, and is convenient to Lake Monona, Lake Mendota, the University of Wisconsin-Madison and a variety of restaurants, shops, art galleries, parks, museums and entertainment venues. Madison’s economy offers a wide variety of business demand generators, including, but not limited to, government, insurance, biotechnology, manufacturing and telecommunications, as well as leisure demand generators. According to data provided by STR for the trailing twelve months ended May 31, 2024, revenue per available room (“RevPAR”) for the Madison CBD, WI submarket improved by approximately 7% year over year.
In addition, the Company today announced the recent disposition of the 82-room SpringHill Suites by Marriott Greensboro in Greensboro, North Carolina, for approximately $7.1 million.
As previously announced, the Company continues to have one additional hotel under contract for purchase, a Motto by Hilton that is under development in downtown Nashville, Tennessee, for an anticipated total purchase price of approximately $98.2 million with an expected 260 rooms, which the Company anticipates acquiring in late 2025 following completion of construction. There are many conditions to closing on this hotel that have not yet been satisfied, and there can be no assurance that a closing on this hotel will occur under the outstanding purchase contract.
Following the acquisition of the Embassy Suites Madison Downtown and the disposition of the SpringHill Suites Greensboro, the Apple Hospitality hotel portfolio includes 224 hotels with 30,066 guest rooms geographically diversified throughout 37 states and the District of Columbia.
