Apple Hospitality REIT has acquired a portfolio of three hotels for a total purchase price of $126 million.
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, Ore., for a total purchase price of $75 million, or approximately $309,000 per key. Other terms were not disclosed.
“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 the Homewood Suites Fort Worth Medical Center opened in June 2013. The hotels are adjacent to one another benefit from a variety of operational synergies and demand generators, including health care, aerospace and defense, manufacturing, education and both 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 for the third quarter of 2021 down only 3 percent as compared to the same period of 2019. The hotels are close to Fort Worth’s major hospitals, Texas Christian University, Will Rogers Memorial Center, Dickies Arena and numerous corporate offices.
The Hampton Inn & Suites Portland Pearl District opened in September 2017 and is close to Washington Park, Forest Park and Portland State University. Portland is home to a variety of business demand generators, including technology, consumer goods, trade, health care, education, financial services and manufacturing. For the third quarter of 2021, the Hampton Inn & Suites Portland Pearl District achieved occupancy of more than 60 percent and produced RevPAR of approximately $105.
Following these acquisitions, the Apple Hospitality portfolio has 219 hotels with 28,747 guestrooms across throughout 36 states.