Apple Hospitality has sold nine hotels in five states. The REIT's portfolio consists of 234 hotels with more than 30,000 guest rooms located in 87 markets in 34 states.
RICHMOND, VA—Locally-based hotelier Apple Hospitality REIT, Inc. has sold a total of nine hotels with 1,054 rooms in five states for a total sale price of $95 million.
The deal includes two hotels in Florida-the 100-room Homewood Suites by Hilton Sarasota and the Towne Place by Marriott Suites Tampa (94 rooms). The portfolio sale also involved one hotel in Louisiana—the 119-room Spring Hill Suites by Marriott Baton Rouge—and one hotel property in North Carolina—the 124-room Hampton Inn & Suites by Hilton Holly Springs.
The other components of the portfolio traded to an unnamed buyer were three hotels in Texas—the 142-room Hilton Garden Inn Duncanville, the 90-room Courtyard by Marriott Texarkana and the 85-room TownePlace Suites by Marriott Texarkana. The final two properties of the portfolio are located in Virginia—the 175-room Courtyard by Marriott Bristol and the 125-room Courtyard by Marriott Harrisonburg.
“We are pleased to have completed the sale of this portfolio,” says Nelson Knight, EVP and chief investment officer of Apple Hospitality. “Through these attractively priced transactions, we adjusted our market exposure in ways that we feel will further enhance the strength and stability of our hospitality platform.”
For the trailing 12 months ended Feb. 28, 2019, the traded portfolio had net income of approximately $5.4 million, a Hotel EBITDA margin of 31.1% and Hotel EBITDA of $9.5 million. Based on these trailing 12 months results, the sales price of $95 million resulted in a capitalization rate of approximately 7.3%, including an estimated approximate $18.1 million brand property improvement plan required to be completed by the buyer, or a Hotel EBITDA multiple of 11.9 times, Apple Hospitality states.
The closing of the portfolio sale follows last week's announcement of some changes in the REITs' executive suite.
The company announced on March 25 that the company's Board of Directors has appointed Kristian Gathright to the Board of Directors, effective March 22, 2019, and that Gathright plans to retire from her role with the company as EVP and chief operating officer in the first quarter of 2020. The company also announced today that EVP and chief financial officer Bryan Peery intends to retire from the company in the first quarter of 2020.
Apple Hospitality says it is working with an executive search firm, with a focus on external candidates, for a successor chief financial officer. Gathright and Peery plan to remain with the company over the next year to assist with an orderly transition and ensure an efficient and seamless integration of the new structure, Apple Hospitality stated in a press announcement.
Apple Hospitality's portfolio consists of 234 hotels with more than 30,000 guest rooms located in 87 markets throughout 34 states. Franchised with industry-leading brands, the Company's portfolio comprises 108 Marriott-branded hotels, 125 Hilton-branded hotels and one Hyatt-branded hotel.
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John Jordan
John Jordan is a veteran journalist with 36 years of print and digital media experience.
