RICHMOND, Va.–Apple Hospitality REIT, Inc. (NYSE: APLE) (the “Company” or “Apple Hospitality”) today announced that it has completed the acquisition of the 146-room Residence Inn by Marriott Seattle South/Renton (the “Hotel”) for approximately $55.5 million, or $380,000 per key.
“We are pleased to further diversify and enhance our portfolio with the acquisition of this recently-built, extended-stay hotel in Renton,” said Nelson Knight, President, Real Estate and Investments of Apple Hospitality. “Renton is well known for its strong business environment that spans aviation, aerospace, manufacturing, technology, life science and medical. Located in close proximity to downtown Seattle and downtown Bellevue, Renton provides easy access to sporting events and to the area’s many outdoor activities. The Residence Inn is ideally located near a variety of guest amenities and benefits from the diversity of Renton’s business and leisure demand generators. Given the strength of our operating performance and the flexibility of our balance sheet, we are uniquely positioned within the current transaction environment to be acquisitive and to meaningfully enhance long-term shareholder value. We have three additional hotels under contract for purchase and continue to underwrite numerous opportunities.”
The Residence Inn Seattle South/Renton opened in August 2019 and is located at 1200 Lake Washington Boulevard North, Renton, Washington. The Hotel is less than one mile from The Boeing Company’s Renton production facility, known for its assembly of the Boeing 737 family of commercial airplanes, and just over one mile from PACCAR Inc’s Kenworth truck assembly plant in Renton. In addition, the Hotel is ideally situated across from Gene Coulon Memorial Beach Park, which provides access to the southeastern shore of Lake Washington, near a variety of stores and restaurants, and convenient to the Virginia Mason Athletic Center, home of the Seattle Seahawks’ headquarters and training facility. Tukwila Station, serving the Sounder commuter rail, and Seattle-Tacoma International Airport are each just a short drive from the Hotel. According to data provided by STR for the trailing twelve months ended August 31, 2023, as compared to the same period of 2022, revenue per available room (“RevPAR”) for the Bellevue/East, WA submarket improved by more than 16%.
As previously announced, the Company continues to have three additional hotels under contract for purchase:
- The 192-room Embassy Suites by Hilton South Jordan Salt Lake City for a total purchase price of approximately $36.8 million, or $191,000 per key, which the Company anticipates acquiring during the fourth quarter 2023.
- 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 Residence Inn Seattle South/Renton, the Apple Hospitality hotel portfolio includes 223 hotels with 29,409 guest rooms geographically diversified throughout 37 states.
