Apple Hospitality REIT closed on the acquisition of a 190-room Courtyard by Marriott in Burbank, Calif., for a purchase price of $54 million, or approximately $284,000 per key.
“As we continue to refine our portfolio of high quality hotels, we are pleased to have the Courtyard Burbank hotel under our ownership and expand Apple Hospitality’s presence within the Burbank market,” said Nelson Knight, EVP and chief investment officer for Apple Hospitality REIT. “With 190 rooms, a recent renovation, and a multitude of diverse demand generators, this hotel acquisition aligns with our overall strategy and complements our existing portfolio.”
Located in the San Fernando Valley and within close proximity to numerous entertainment, media, healthcare and technology companies, the Courtyard Los Angeles Burbank Airport hotel is poised to benefit from multiple business and leisure demand generators. The property is convenient to the Burbank Bob Hope Airport and a variety of attractions including Walt Disney Studios, Universal Studios Hollywood and Warner Bros. Studios. The hotel is a short drive from the broader Los Angeles area with access to downtown Los Angeles, Beverly Hills, Hollywood, Griffith Park, popular sports arenas and various beaches. Smith Travel Research (STR) reported positive demand and rate trends for the Burbank market with RevPAR growth of 7.2 percent for the first six months of 2015 as compared to the same period of 2014.
Following this acquisition, the Apple Hospitality portfolio includes 176 hotels, with approximately 22,500 guestrooms, geographically diversified across 32 states.