RICHMOND–Apple Hospitality REIT has made another of its periodic acquisitions, picking up the newly constructed 210-room Hampton Inn & Suites by Hilton Phoenix Downtown for $44 million, or $210,000 per key.
The REIT acquired this property by entering into a fixed-rate contract with the developer prior to its construction, according to Nelson Knight, EVP and chief investment officer of Apple Hospitality. “The hotel is sure to benefit from its prime location in the vibrant downtown Phoenix market,” he said in a prepared statement.
The new hotel is located at 77 East Polk St. in Phoenix, adjacent to Arizona State University's Downtown Phoenix campus and less than one mile from the University of Arizona College of Medicine – Phoenix and Northern Arizona University's Phoenix Biomedical Campus. According to data provided by STR, for the trailing 12 months ended March 31, 2018 RevPAR for the Phoenix market improved by approximately 4%, as compared to the prior 12-month period.
Following this acquisition, the Apple Hospitality portfolio includes 242 hotels with more than 30,700 guest rooms throughout 34 states.
Other recent acquisitions by Apple Hospitality REIT include the 119-room Hampton Inn & Suites by Hilton Atlanta-Downtown and the 144-room Hampton Inn & Suites by Hilton Memphis-Beale Street. The properties traded for a combined purchase price of $63 million, or approximately $240,000 per key.
In December of 2017 Apple Hospitality REIT acquired the 135-room Home2 Suites by Hilton in Anchorage, Alaska, for a purchase price of approximately $24 million, or $178,000 per key.
In October of 2017, Apple Hospitality made two acquisitions: the Residence Inn by Marriott Portland Downtown/Waterfront in Maine, for $55.8 million, or $311,500 per key and the Residence Inn by Marriott Salt Lake City Murray, in Murray, Utah, for $25.5 million, or $187,500 per key.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
