Acquisition of Apple Hospitality REIT – GuruFocus.com
Apple Hospitality REIT, Inc. (NYSE: APLE) (the “Company” or “Apple Hospitality”) today announced the acquisition of AC Hotel by Marriott Louisville Downtown for $51 million, or approximately $327,000 per key, and the AC Hotel by Marriott Pittsburgh Downtown for $34 million, or approximately $254,000 per key.
“We are delighted to enrich our portfolio with these attractive acquisitions which highlight the strength of our relationships with top hotel owner-operators and our ability to create value in a highly competitive market,” said Nelson Knight. , President, Real Estate. and Apple Hospitality investments. “These carefully designed hotels offer guests modern accommodations, comfortable meeting spaces and distinctive lounges, and are well positioned in their markets to benefit from a variety of business and leisure demand drivers. We continue to actively explore other opportunities, such as these, that will optimize our portfolio in ways that will enhance our future performance and maximize long-term value for our shareholders.
The 156-room AC Hotel Louisville Downtown opened in April 2018 and is located at 727 East Market Street, Louisville, Kentucky, in the bustling East Market district, also known as NuLu for New Louisville, which is home to upscale restaurants, boutiques, art galleries and entertainment venues. The hotel benefits from a variety of leisure, academic and sports demand generators given its proximity to the KFC Yum! Center, the University of Louisville, the Kentucky International Convention Center, well-known bourbon distilleries, various outdoor spaces and parks, and Churchill Downs, home of the annual Kentucky Derby. In addition, many large businesses and industries related to shipping and logistics, food and beverage, automobile manufacturing, healthcare and health insurance, among others, are located in Louisville and lead to business trips to the region. Recent hotel performance in Louisville has returned to pre-pandemic levels. According to data provided by STR for the month of September 2022 compared to September 2019, revenue per available room (“RevPAR”) for the Louisville CBD, KY submarket improved by approximately 2% and the RevPAR of AC Hotel Louisville Downtown improved by approximately 8%.
The 134-room AC Hotel Pittsburgh Downtown opened in July 2018 and is located at 1126 Smallman Street, Pittsburgh, Pennsylvania, next to the David L. Lawrence Convention Center and close to many restaurants, shops, art galleries , theatres, parks and riverside walks. trails of downtown Pittsburgh’s cultural district, Market Square and the Strip district. The hotel is conveniently located a short distance from the PPG Paints Arena, Acrisure Stadium and PNC Park, home to Pittsburgh’s professional sports teams and major leisure travel engines in the area. In addition to leisure demand drivers, the hotel benefits from a variety of business and academic demands driven by technology, robotics, financial services, manufacturing, automotive, and healthcare businesses located in the area as well as the University of Pittsburgh and Carnegie Mellon University. In recent months, Pittsburgh has seen hotel performance surpass pre-pandemic levels, and according to data provided by STR for the month of September 2022 compared to September 2019, the RevPAR of the Pittsburgh CBD, PA submarket improved by approximately 17% and RevPAR for the AC Hotel Pittsburgh Downtown improved by approximately 36%.
Following these acquisitions, the Apple Hospitality portfolio includes 220 hotels with 28,983 rooms geographically distributed in 37 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 upscale, room-based hotel properties. United States. Apple Hospitality’s portfolio consists of 220 hotels with approximately 29,000 rooms located in 87 markets across 37 states. A concentrate of industry-leading brands, the Company’s portfolio consists of 96 Marriott-branded hotels, 119 Hilton-branded hotels, four Hyatt-branded hotels and one independent hotel. For more information, visit www.applehospitalityreit.com.
Disclaimer of Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are generally identified by the use of statements that include expressions such as “may”, “believe”, “expect”, “anticipate”, “intend”, “estimate”, “project”, “target”, “goal”. ”, “plan”, “should”, “will”, “predict”, “potential”, “outlook”, “strategy” and similar expressions that convey uncertainty of future events or results. Such statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such statements. forward-looking statements.
Currently, one of the most important factors that could cause actual results to differ materially from the company’s forward-looking statements continues to be the adverse effect of COVID-19, including resurgences and variations, on the company’s activities, financial performance and condition, its operations, results and cash flows, the real estate market and the hotel industry in particular, and the global economy and financial markets in general. The significance, extent and duration of the continued impacts caused by the COVID-19 pandemic on the Company will depend on future developments, which are highly uncertain and cannot be predicted with certainty at this time, including the extent, severity and duration of the pandemic. , the extent and effectiveness of the measures taken to contain the pandemic or mitigate its impact, the effectiveness, acceptance and availability of vaccines, the duration of associated immunity and the effectiveness of vaccines against variants of COVID-19, the potential for additional hotel closures/consolidations which may be mandatory or desirable, whether based on increasing COVID-19 cases, new variants or other factors, slowdown or potential cancellation of “reopenings” in some states, and the direct and indirect economic effects of the pandemic and containment measures, among others. In addition, investors are cautioned to interpret many of the risks identified in the section titled “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 as being heightened due to numerous and ongoing adverse effects of COVID-19. Additional factors include, but are not limited to, the Company’s ability to effectively acquire and sell properties and redeploy proceeds; the expected timing and frequency of distributions to shareholders; the Company’s ability to fund its capital obligations; the Company’s ability to successfully integrate ongoing operations and implement its operational strategy; changes in general political, economic and competitive conditions and specific market conditions; reduced business and leisure travel due to travel-related health concerns, including the COVID-19 pandemic or an increase in cases of COVID-19 or any other infectious or contagious disease in or around the United States abroad; adverse changes in real estate and real estate capital markets; funding risks; changes in interest rates; litigation risks; regulatory proceedings or investigations; and changes in applicable laws or regulations or interpretations of applicable laws and regulations that affect the Company’s business, assets or classification as a REIT. Although the Company believes that the assumptions underlying the forward-looking statements contained herein are reasonable, any of these assumptions may prove to be incorrect and, accordingly, there can be no assurance that such statements included in this press release will prove to be accurate. In light of the material uncertainties inherent in the forward-looking statements included herein, the inclusion of such information 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 objectives and Company plans will be achieved. Furthermore, the qualification of the Company as a REIT involves the application of very technical and complex provisions of the Tax Code 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 section entitled “Risk Factors” in the annual report. of the company on Form 10-K for the fiscal year ending December. 31, 2021. Any forward-looking statements made by the Company speak 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 statements, as a result of new information, future events or otherwise, except as required by law.
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