Apple Hospitality REIT acquires a group of three hotels
RICHMOND, VA (November 18, 2021) – Apple Hospitality REIT, Inc. (NYSE: APLE) (the “Company” or “Apple Hospitality”) today announced the acquisition of a group of three hotels for a total purchase price of $126 million. As previously announced, the portfolio consists of the current 157-room Hilton Garden Inn Fort Worth Medical Center in Fort Worth, Texas, with a total purchase price of $29.5 million, or approximately $188,000 per key; The existing and recently renovated 112-room Homewood Suites by Hilton Fort Worth Medical Center in Fort Worth, Texas, with a total purchase price of $21.5 million, or approximately $192,000 per key; and the current 243-room Hampton Inn & Suites by Hilton Portland Pearl District in Portland, Oregon, with a total purchase price of $75 million, or approximately $309,000 for a key.
“These off-market transactions highlight the strength of our relationships with best-in-class hotel operators and owners and our ability to drive value in a highly competitive market through attractive acquisitions,” said Nelson Knight, Apple’s head of real estate and investments. Hospitality. “We are pleased to increase our presence in the dynamic Fort Worth market in Texas and expand into Portland, Oregon, with these high quality, attractively priced and well located assets that align with our core ownership strategy. During the travel recovery was rapid in Fort Worth, and the pace slower in Portland, giving us a unique opportunity to enter Portland, a market that we believe will be robust in the long run, below replacement value and at a significant discount to recent similar deals in the market.Maximizing long-term value for our shareholders remains our top priority, and we are actively working on Explore additional opportunities, like this one, that improve our portfolio in ways that will raise our performance in the future.”
Hilton Garden Inn Fort Worth Medical Center opened in April 2012 and is located at 912 Northton Street, Fort Worth, Texas, and Homewood Suites Fort Worth Medical Center opened in June 2013 and is located at 2200 Charlie Lane, Fort Worth, Texas. Hotels are adjacent to each other and benefit from a variety of operational synergies and demand generators, including healthcare, aviation, defense, manufacturing, education, business travel and leisure. According to data provided by STR, the Fort Worth CBD/I-820 West, Texas submarket is rapidly recovering from pandemic-related declines, with revenue per available room (“RevPAR”) for the third quarter of 2021 declining only 3% compared to the same period in 2019. Hotels are convenient for major hospitals in Fort Worth, Texas Christian University, Will Rogers Memorial Center, Dickies Arena, many corporate offices, and a variety of guest amenities including restaurants, shops, museums and entertainment venues.
The Hampton Inn & Suites Portland Pearl District opened in September 2017, ideally located at 354 Northwest 9NSNS Avenue, Portland, Oregon, in the vibrant Pearl District near Washington Park, Forest Park, and Portland State University and within walking distance of a variety of restaurants, art galleries, shops, and outdoor spaces. Portland is home to a variety of business demand generators, including technology, consumer goods, commerce, healthcare, education, financial services, and manufacturing, and the hotel’s location makes it an attractive destination for leisure travel. In the third quarter of 2021, the Hampton Inn & Suites Portland Pearl District achieved an occupancy rate of over 60% and generated revenue per available room of approximately $105.
Following these acquisitions, Apple Hospitality’s portfolio includes 219 hotels with 28,747 geographically diverse guest rooms in 36 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 diversified portfolios of luxury room-focused hotels in the United States. Apple Hospitality’s portfolio consists of 219 hotels with more than 28,700 guest rooms in 86 markets in 36 states. The company’s portfolio is concentrated with the industry’s leading brands, and consists of 94 Marriott brand hotels, 119 Hilton branded hotels, four Hyatt branded hotels, and two standalone hotels. For more information, please visit www.appleh Hospitalityreit.com.
Disclaimer of Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Exchange Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are typically identified through the use of statements that include phrases such as “may,” “believe,” “expect,” “expect,” “intend,” “estimate,” “project,” “object,” “objective,” and “plan.” “should,” “will,” “forecast,” “likelihood,” “expectation,” “strategy,” and similar expressions that convey uncertainty about future events or results. These statements include known and unknown risks, uncertainties and other factors that may cause a difference to differ. The Company’s actual results, performance or achievements are materially different from future results, performance or achievements expressed or implied by these forward-looking statements.
Currently, the negative impact of COVID-19, including emissions and variables, on the Company’s business, financial performance, condition and operating remains among the most significant factors that could cause actual results to differ materially from the Company’s forward-looking statements. Results and cash flows, the real estate market and the hospitality industry specifically, and the global economy and financial markets in general. The significance, extent and duration of the continuing effects of the COVID-19 outbreak will depend on future developments, which are highly uncertain and cannot be predicted with confidence at this time, including the scope, severity and duration of the pandemic, the extent and effectiveness of measures taken to contain or mitigate the impact of the pandemic, speed of vaccine distribution, efficacy, acceptance and availability of vaccines, duration of concomitant immunity and efficacy of vaccines against COVID-19 variants, potential for additional closures/mergers of hotels that may be mandated or recommended, whether based on increased COVID-19 cases, new variables or other factors Others, the slowdown or potential rollback of “reopenings” in certain states, the direct and indirect economic effects of the pandemic and containment measures, among others. Further, investors are cautioned against interpreting many of the risks identified in the “Risk Factors” section of the Company’s annual report on Form 10-K for the fiscal year ended December 31, 2020 as increased as a result of ongoing and multiple risks. The negative effects of COVID-19. Additional factors include, but are not limited to, the Company’s ability to effectively acquire and dispose of property and redistribute proceeds; The company’s ability to finance capital commitments; The company’s ability to successfully integrate outstanding transactions and implement its operational strategy; changes in general political, economic and competitive conditions and specific market conditions; reduce business and leisure travel due to travel-related health concerns, including a large-scale outbreak of COVID-19 or an increase in cases of COVID-19 or any other contagious or contagious disease in the United States or abroad; negative changes in the capital markets in real estate and real estate; financing risk; changes in interest rates. risk of litigation, regulatory actions or inquiries; and changes in laws, regulations, or interpretations of existing laws and regulations that affect the Company’s business, assets, or classification as REITs. Although the Company believes that the assumptions underlying the forward-looking statements made herein are reasonable, none of the assumptions may be inaccurate, and therefore there can be no guarantee 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
It should not be taken as a representation by the Company or any other person that the results or conditions described in such statements or the Company’s objectives and plans will be achieved. Additionally, qualifying a company as a REIT involves the application of high-tech and complex provisions of the Internal Revenue Act 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 “Risk Factors” section of the company’s annual report on Form 10-K for the fiscal year ending December 31, 2020. Any forward-looking statement made by the company 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.
Apple Hospitality REIT, Inc.
Kelly Clark, Vice President, Investor Relations
For additional information or to receive press releases via email, visit www.appleh Hospitalityreit.com.
Apple Hospitality REIT Inc. Share this content on November 18 2021 He is solely responsible for the information contained therein. Distributed a year ago, without editing and without modification, on date November 18, 2021, 21:22:03 UTC.