Apple Hospitality REIT has opened and acquired the new 105-room Hyatt House and 154-room Hyatt Place in Tempe, Ariz., for a gross purchase price of approximately $64.6 million, or approximately $249,000 per key.
“We are pleased to enhance the diversification of our portfolio with the acquisition of these newly developed hotels in the dynamic Tempe market,” said Nelson Knight, president, real estate and investments of Apple Hospitality.
The dual-brand development is located on the Tempe campus of Arizona State University near athletic facilities and the planned multi-sports arena. The complex is across from Desert Financial Arena, within walking distance of Sun Devil Stadium, a short drive from Phoenix Sky Harbor International Airport and close to a Valley Metro Rail stop. The hotels were designed and developed in line with LEED certification requirements. “We contracted for the development of the Hotels in 2018 and are pleased to have secured attractive per-key pricing prior to the start of construction, which we believe adds meaningful value and speaks to the strength of our relationship with the developer,” Knight said.
The hotels are part of the initial phase of the Novus Innovation Corridor, a mixed-use development integrated with ASU’s Tempe campus that will house offices, residences, retail stores and restaurants throughout 355 acres.
Following this acquisition, the Apple Hospitality portfolio includes 235 hotels with more than 30,000 guest rooms geographically diversified throughout 34 states. The company’s portfolio consists of 104 Marriott-branded hotels, 126 Hilton-branded hotels, three Hyatt-branded hotels and two independent hotels.