Dealmaker: Apple Hospitality REIT Acquires Two Residence Inns for $81M

Apple Hospitality REIT, Richmond, Va., acquired two Residence Inn by Marriott hotels for $81.3 million.

Nelson Knight, Executive Vice President and Chief Investment Officer of Apple Hospitality REIT, said the firm has sold three of its six full-service hotels in the past year to focus on high-quality select-service and extended-stay hotels like the 179-room Residence Inn by Marriott Portland Downtown/Waterfront and the 136-room Residence Inn by Marriott Salt Lake City Murray.

On October 13 the real estate investment trust acquired the Residence Inn by Marriott Portland Downtown/Waterfront in Portland, Maine for $55.8 million, or $311,500 per key. The hotel on Portland’s waterfront is within walking distance of Portland’s Old Port District and cruise ship terminals as well as the University of Southern Maine and Maine Medical Center.

STR, Hendersonville, Tenn., reported Portland’s revenue per available room improved 5 percent over the last year.

On October 20, the company acquired the Residence Inn by Marriott Salt Lake City Murray in Murray, Utah for $25.5 million or $187,500 per key. STR said this market’s RevPAR improved 9 percent over the last year.

In September Apple Hospitality acquired the newly constructed dual-branded Hilton Garden Inn and Home2 Suites by Hilton in downtown Birmingham, Ala. for $38.4 million. The property has 210 rooms near the University of Alabama at Birmingham, Children’s of Alabama pediatric hospital, the Birmingham VA Medical Center and Regions Financial Corp.’s headquarters.

Apple Hospitality’s portfolio includes 238 hotels in 34 states after these acquisitions.