Apple Hospitality REIT Inc., a publicly traded real estate investment trust that owns one of the largest portfolios of upscale, select-service hotels in the US, has recently closed on the acquisition of the newly-constructed, dual-branded Hilton Garden Inn and Home2 Suites by Hilton property in Birmingham, Alabama.
The hotels have a combined total of 210 rooms, for a purchase price of approximately $38.4 million, or $183,000 per key.
“We are pleased to add this new, unique, dual-branded property to our portfolio of hotels and enter the resurgent downtown Birmingham market,” said Nelson Knight, Executive Vice President and Chief Investment Officer of Apple Hospitality REIT. “Our per-key purchase price for these new hotels in a growing market is very attractive, highlighting the benefits of entering into fixed-price contracts with developers prior to construction. The property is ideally located with great exposure to a wide variety of corporate, medical, academic, government and leisure demand generators.”
The new Hilton Garden Inn and Home2 Suites by Hilton, located at 250 18th Street South in Birmingham, Alabama, are situated in the heart of Birmingham’s downtown business district with easy access to the University of Alabama at Birmingham, Children’s of Alabama pediatric hospital, the Birmingham VA Medical Center, Regions Financial Corporation’s headquarters, numerous corporate offices, and a variety of museums, restaurants and entertainment venues. According to data provided by Smith Travel Research for the seven-month period ending July 31, 2017, RevPAR for the Birmingham, Alabama market improved by more than seven percent, as compared to the same period of 2016.
Following this acquisition, the Apple Hospitality portfolio includes 237 hotels, with more than 30,000 guestrooms, geographically diversified throughout 33 states.
The company’s portfolio consists of 237 hotels, with more than 30,000 guestrooms, diversified across the Hilton and Marriott families of brands with locations in urban, high-end suburban and developing markets throughout 33 states.
In other Apple REIT news, as the REIT Wire recently reported, the company’s board of directors declared a regular monthly cash distribution of $0.10 per common share for the month of June 2017. The distribution is payable on June 15, 2017, to shareholders of record as of June 2, 2017.
The company’s Q1 activity included the newly constructed 124-room Courtyard by Marriott Fort Worth Historic Stockyards on February 2, 2017, for a purchase price of approximately $18 million.
Effective September 1, 2016, Apple Hospitality completed its merger with Apple REIT Ten Inc. The merger added 56 Marriott and Hilton branded primarily select service and extended stay hotels with 7,209 guestrooms to the company’s portfolio. As consideration in the merger, the company issued approximately 49 million common shares and paid approximately $94 million to the Apple Ten shareholders, and assumed approximately $257 million of debt.