Apple Hospitality REIT, Inc. Announces Acquisition of 234-Room AC Hotel by Marriott Washington DC Convention Center
March 27, 2024 at 09:00 am EDT
Share
Apple Hospitality REIT, Inc. announced the acquisition of the 234-room AC Hotel by Marriott Washington DC Convention Center (the Hotel) for approximately $116.8 million, or $499,000 per key. 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, 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.
Apple Hospitality REIT, Inc. is a real estate investment trust (REIT) that owns a diverse portfolio of upscale, room-focused hotels in the United States. The Company's portfolio consists of about 224 hotels with more than 29,886 guest rooms located in 87 markets throughout 37 states as well as one property leased to third parties. Its hotel portfolio consists of 100 Marriott-branded hotels, 118 Hilton-branded hotels and five Hyatt-branded hotels. Its hotels operate under Marriott or Hilton brands. The hotels are operated and managed under separate management agreements with 16 hotel management companies, consisting of Hilton Garden Inn, Hampton, Courtyard, Residence Inn, Homewood Suites, SpringHill Suites, Fairfield, Home2 Suites, TownePlace Suites, AC Hotels, Hyatt Place, Marriott, Embassy Suites, Aloft, and Hyatt House. Its hotels are located in various states, including Alaska, Arizona, California, Colorado, Florida, Georgia, Idaho, Illinois, Kansas, Louisiana, Michigan, and others.