Home Commercial Apple Hospitality REIT Acquires Pearl District Hotel in Portland for $75MM

Apple Hospitality REIT Acquires Pearl District Hotel in Portland for $75MM

Apple Hospitality REIT, Portland

RICHMOND, Va.–Apple Hospitality REIT, Inc. (NYSE: APLE) (the “Company” or “Apple Hospitality”) today announced the acquisition of a portfolio of three hotels for a total purchase price of $126 million. As previously announced, the portfolio consists of the existing 157-room Hilton Garden Inn Fort Worth Medical Center in Fort Worth, Texas, for a total purchase price of $29.5 million, or approximately $188,000 per key; the existing and recently renovated 112-room Homewood Suites by Hilton Fort Worth Medical Center in Fort Worth, Texas, for a total purchase price of $21.5 million, or approximately $192,000 per key; and the existing 243-room Hampton Inn & Suites by Hilton Portland Pearl District in Portland, Oregon, for a total purchase price of $75 million, or approximately $309,000 per key.

“These off-market transactions highlight the strength of our relationships with best-in-class hotel owner-operators and our ability to drive value in a highly competitive marketplace through attractive acquisitions,” said Nelson Knight, President, Real Estate and Investments of Apple Hospitality. “We are pleased to increase our presence in the dynamic Fort Worth, Texas market and expand into Portland, Oregon, with these high-quality, attractively-priced, well-positioned assets that align with our core ownership strategy. While the recovery of travel has been swift in Fort Worth, the pace has been slower in Portland, which provided us the unique opportunity to enter Portland, a market we believe will be strong over the long term, below replacement value and at a significant discount to recent comparable trades in market. Maximizing long-term value for our shareholders continues to be our top priority, and we are actively exploring additional opportunities, like these, that optimize our portfolio in ways that will elevate our future performance.”

The Hilton Garden Inn Fort Worth Medical Center opened in April 2012 and is located at 912 Northton Street, Fort Worth, Texas, and the Homewood Suites Fort Worth Medical Center opened in June 2013 and is located at 2200 Charlie Lane, Fort Worth, Texas. The hotels are adjacent to one another and benefit from a variety of operational synergies and demand generators, including health care, aerospace and defense, manufacturing, education, and business and leisure travel. According to data provided by STR, the Fort Worth CBD/I-820 West, Texas submarket is recovering quickly from pandemic-related declines, with revenue per available room (“RevPAR”) for the third quarter of 2021 down only 3% as compared to the same period of 2019. The hotels are convenient to Fort Worth’s major hospitals, Texas Christian University, Will Rogers Memorial Center, Dickies Arena, numerous corporate offices, and a variety of guest amenities including restaurants, shops, museums and entertainment venues.

The Hampton Inn & Suites Portland Pearl District opened in September 2017 and is ideally located at 354 Northwest 9th Avenue, Portland, Oregon, in the vibrant Pearl District neighborhood near Washington Park, Forest Park and Portland State University and within walking distance to a variety of restaurants, art galleries, shops and outdoor spaces. Portland is home to a variety of business demand generators, including technology, consumer goods, trade, health care, education, financial services and manufacturing, and the hotel’s location also makes it an attractive destination for leisure travel. For the third quarter of 2021, the Hampton Inn & Suites Portland Pearl District achieved occupancy of over 60% and produced RevPAR of approximately $105.

Following these acquisitions, the Apple Hospitality portfolio includes 219 hotels with 28,747 guest rooms geographically diversified throughout 36 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 219 hotels with more than 28,700 guest rooms located in 86 markets throughout 36 states. Concentrated with industry-leading brands, the Company’s portfolio consists of 94 Marriott-branded hotels, 119 Hilton-branded hotels, four Hyatt-branded hotels and two independent hotels.