Apple Hospitality REIT has acquired the 175-room Courtyard by Marriott Salt Lake City Downtown for approximately $48.1 million, or $275,000 per key; the 159-room Hyatt House Salt Lake City/Downtown for approximately $34.3 million, or $215,000 per key; and a corresponding 346-space parking garage for approximately $9.1 million, which serves both hotels as well as the surrounding area. Other terms of the transaction were not disclosed.
“While overall industry transaction volume remains muted, the strength of our operating performance and our relative liquidity position have provided us with unique opportunities to pursue accretive acquisitions and to grow our portfolio,” Nelson Knight, president, real estate and investments of Apple Hospitality, said in a statement. “The acquisition of the Courtyard and the Hyatt House in downtown Salt Lake City expands our presence within the vibrant Salt Lake market, an area well known for its business-friendly environment, attractive cost of living, cultural attractions and proximity to outdoor recreational activities, which has seen significant economic growth in recent years and is poised for continued expansion. By leveraging the strength of our industry relationships and our deep transaction experience, we are expanding our portfolio in ways that we believe will meaningfully enhance shareholder value over the long term. We are actively underwriting additional opportunities and are well positioned to further add to our portfolio in the coming months.”
The Courtyard Salt Lake City Downtown opened in October 2015 and the Hyatt House Salt Lake City/Downtown, which recently underwent a full soft-goods renovation, opened in January 2015. The hotels sit adjacent to one another and are located directly across the street from the Delta Center, within walking distance of Salt Palace Convention Center, and convenient to Temple Square, Utah State Capitol, the University of Utah, Salt Lake City International Airport, numerous performing arts venues, the Cottonwood Canyons and Park City ski areas.
Salt Lake City’s diversified economy offers a wide variety of business and leisure demand generators and includes software development, hardware manufacturing and information technology firms, as well as defense, oil and gas, transportation, tourism, health care and financial service industries, among others. According to data provided by STR for the trailing twelve months ended Aug. 31, as compared to the same period of 2022, revenue per available room for the Salt Lake CBD/Airport submarket improved by more than 14 percent.
In addition, the company announced that it has two additional hotels under contract for purchase—the 146-room Residence Inn by Marriott Seattle South/Renton for approximately $55.5 million, or $380,000 per key, and the 192-room Embassy Suites by Hilton South Jordan Salt Lake City for approximately $36.8 million, or $191,000 per key. Assuming all conditions to closing are met, the company anticipates acquiring the hotel in Renton and the hotel in South Jordan during the fourth quarter.
Following the acquisition of the downtown Salt Lake City hotels, the Apple Hospitality hotel portfolio includes 222 hotels with 29,263 guestrooms across 37 states.