Apple Hospitality REIT, Inc. (NYSE: APLE) (the “Company” or
“Apple Hospitality”) today announced the acquisition of the 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 pleased to enhance our portfolio with these attractive
acquisitions that highlight the strength of our relationships with
best-in-class hotel owner-operators and our ability to drive value
in a highly competitive marketplace,” said Nelson Knight,
President, Real Estate and Investments of Apple Hospitality. “These
thoughtfully designed hotels offer guests modern accommodations,
comfortable meeting spaces and distinctive lounge areas, and are
well positioned within their markets to benefit from a variety of
business and leisure demand generators. We continue to actively
explore additional opportunities, like these, that will optimize
our portfolio in ways that will elevate 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,
within the vibrant East Market District, also known as NuLu for New
Louisville, which is home to upscale restaurants, shops, art
galleries and entertainment venues. The hotel benefits from a
variety of leisure, academic and sports-related 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, numerous large companies and industries related to
shipping and logistics, food and beverage, automobile
manufacturing, health care and health insurance, among others, are
located in Louisville and drive business-related travel to the
area. Recent Louisville hotel performance has recovered to
pre-pandemic levels. According to data provided by STR for the
month of September 2022 as compared to September 2019, revenue per
available room (“RevPAR”) for the Louisville CBD, KY submarket
improved by approximately 2% and RevPAR for the 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,
adjacent to the David L. Lawrence Convention Center and near the
many restaurants, shops, art galleries, theaters, parks and
riverfront walking trails of downtown Pittsburgh’s Cultural
District, Market Square and Strip District. The hotel is ideally
located a short distance from PPG Paints Arena, Acrisure Stadium
and PNC Park, which are home to Pittsburgh’s professional sports
teams and significant drivers of leisure travel to the area. In
addition to leisure demand generators, the hotel benefits from a
variety of corporate and academic demand driven by technology,
robotics, financial services, manufacturing, automobile and health
care companies located in the area as well as the University of
Pittsburgh and Carnegie Mellon University. In recent months,
Pittsburgh has seen hotel performance exceed pre-pandemic levels,
and according to data provided by STR for the month of September
2022 as compared to September 2019, RevPAR for 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 guest rooms geographically
diversified throughout 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 diverse portfolios of upscale, rooms-focused hotels in the
United States. Apple Hospitality’s portfolio consists of 220 hotels
with approximately 29,000 guest rooms located in 87 markets
throughout 37 states. Concentrated with 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, please visit
www.applehospitalityreit.com.
Forward-Looking Statements
Disclaimer
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 typically identified by use
of statements that include phrases such as “may,” “believe,”
“expect,” “anticipate,” “intend,” “estimate,” “project,” “target,”
“goal,” “plan,” “should,” “will,” “predict,” “potential,”
“outlook,” “strategy,” and similar expressions that convey the
uncertainty of future events or outcomes. Such statements involve
known and unknown risks, uncertainties, and other factors which may
cause the actual results, performance, or achievements of the
Company to be materially different from future results, performance
or achievements expressed or implied by such forward-looking
statements.
Currently, one of the most significant factors that could cause
actual outcomes to differ materially from the Company’s
forward-looking statements continues to be the adverse effect of
COVID-19, including resurgences and variants, on the Company’s
business, financial performance and condition, operating results
and cash flows, the real estate market and the hospitality industry
specifically, and the global economy and financial markets
generally. 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 confidence at this time, including the scope,
severity and duration of the pandemic, the extent and effectiveness
of the actions taken to contain the pandemic or mitigate its
impact, the efficacy, acceptance and availability of vaccines, the
duration of associated immunity and efficacy of the vaccines
against variants of COVID-19, the potential for additional hotel
closures/consolidations that may be mandated or advisable, whether
based on increased COVID-19 cases, new variants or other factors,
the slowing or potential rollback of “reopenings” in certain
states, and the direct and indirect economic effects of the
pandemic and containment measures, among others. Moreover,
investors are cautioned to interpret many of the risks identified
under the section titled “Risk Factors” in the Company’s Annual
Report on Form 10-K for the fiscal year ended December 31, 2021 as
being heightened as a result of the ongoing and numerous adverse
impacts of COVID-19. Additional factors include, but are not
limited to, the ability of the Company to effectively acquire and
dispose of properties and redeploy proceeds; the anticipated timing
and frequency of shareholder distributions; the ability of the
Company to fund capital obligations; the ability of the Company to
successfully integrate pending transactions and implement its
operating 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 COVID-19 cases or
any other infectious or contagious diseases in the U.S. or abroad;
adverse changes in the real estate and real estate capital markets;
financing risks; changes in interest rates; litigation risks;
regulatory proceedings or inquiries; and changes in laws or
regulations or interpretations of current laws and regulations that
impact 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
the assumptions could be inaccurate, and therefore there can be no
assurance 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 should not be regarded as a
representation by the Company or any other person that the results
or conditions described in such statements or the objectives and
plans of the Company will be achieved. In addition, the Company’s
qualification as a REIT involves the application of highly
technical and complex provisions of the Internal Revenue 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 titled “Risk Factors” in the Company’s Annual Report on
Form 10-K for the fiscal year ended December 31, 2021. Any
forward-looking statement that the Company makes 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.
For additional information or to receive press
releases by email, visit www.applehospitalityreit.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20221026005657/en/
Apple Hospitality REIT, Inc. Kelly Clarke, Vice President,
Investor Relations 804‐727‐6321 kclarke@applereit.com
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