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Apple Hospitality REIT
March, 27 2024
AC Hotel by Marriott Washington DC Convention Center
Apple Hospitality REIT, Inc. (NYSE: APLE) today announced the acquisition of the 234-room AC Hotel by Marriott Washington DC Convention Center for approximately $116.8 million, or $499,000 per key.
“We are pleased to expand our portfolio with the acquisition of the AC Hotel Washington DC Convention Center and are thrilled to establish a presence in downtown Washington, D.C., a market we have tracked and wanted to have a presence in for some time,” said Nelson Knight, President, Real Estate and Investments of Apple Hospitality. “With a wide variety of demand generators, including government, corporate, conventions, sporting events and concerts as well as both domestic and inbound international leisure, we are confident Washington, D.C. is well positioned for continued growth. As we look for and continue to underwrite acquisition opportunities, we are dedicated to pursuing transactions that meaningfully enhance our portfolio and maximize long-term value for our shareholders.”
The AC Hotel Washington DC Convention Center opened in October 2020 and is located at 601 K Street NW, Washington, D.C. Ideally situated in the heart of downtown, the Hotel offers premium amenities, including comfortable, modern guest rooms; a 1,500 square-foot, state-of-the-art fitness center; a rooftop bar and restaurant with stunning views of the city; and ground floor retail space. In addition to being LEED Certified, the Hotel was constructed with a green roof system. The Hotel is one block from the Walter E. Washington Convention Center and convenient to numerous attractions, including Capital One Arena, the U.S. Capitol Complex, performing arts venues, historical monuments and memorials, and the world-renowned Smithsonian museums and galleries, making it appealing to a wide variety of business, leisure and group travelers. According to data provided by STR for the trailing twelve months ended December 31, 2023, as compared to the same period of 2022, revenue per available room (“RevPAR”) for the Washington DC CBD submarket improved by approximately 21%.
As previously announced, the Company continues to have two additional hotels under contract for purchase:
An Embassy Suites by Hilton currently under development in downtown Madison, Wisconsin, for an anticipated total purchase price of approximately $79.3 million with an expected 262 rooms, which the Company anticipates acquiring in mid-2024 following completion of construction. A Motto by Hilton to be developed in downtown Nashville, Tennessee, for an anticipated total purchase price of approximately $98.2 million with an expected 260 rooms, which the Company anticipates acquiring in late 2025 following completion of construction.
There are many conditions to closing on each of these hotels that have not yet been satisfied, and there can be no assurance that closings on these hotels will occur under the outstanding purchase contracts.
Following the acquisition of the AC Hotel Washington DC Convention Center, the Apple Hospitality hotel portfolio includes 224 hotels with 29,886 guest rooms geographically diversified throughout 37 states and the District of Columbia.
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