Apple Hospitality REIT has completed the acquisition of the 192-room Embassy Suites by Hilton South Jordan Salt Lake City for approximately $36.8 million, or $191,000 per key. Other terms were not disclosed.
“We are pleased to expand our portfolio with the acquisition of this ideally located Embassy Suites by Hilton in South Jordan,” said Nelson Knight, president, real estate and investments of Apple Hospitality. “South Jordan is a thriving, dynamic city in the Salt Lake City metropolitan area that has experienced strong economic, employment and population growth in recent years and is projected to see continued expansion well into the future. With its central location on the Wasatch Front, South Jordan offers easy access to a wide range of demand generators for business, leisure and group travel unique to Utah. As we continue to explore different opportunities, we remain focused on pursuing transactions that cultivate and refine our current portfolio and enhance long-term shareholder value. We have two additional hotels under contract for purchase and continue to underwrite numerous opportunities.”
Salt Lake City
The new-build Embassy Suites South Jordan Salt Lake City opened in March 2018 next to the Utah Transit Authority’s FrontRunner South Jordan Station and along Interstate 15, both of which provide direct access to downtown Salt Lake City and the Salt Lake City International Airport. According to data provided by STR for the trailing twelve months ended Sept. 30, as compared to the same period of 2022, revenue per available roomf or the Salt Lake City South submarket improved approximately 8 percent.
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, Wis., for an anticipated total purchase price of approximately $78.6 million with an expected 260 rooms, which the company anticipates acquiring in mid-2024 following completion of construction.
- A Motto by Hilton to be developed in downtown Nashville for an anticipated total purchase price of approximately $96.7 million with an expected 256 rooms, which the company anticipates acquiring in 2025 following completion of construction.
The company noted "many conditions" for each property's closing that have yet to be satisfied, and that the deals might not close under the outstanding purchase contracts.
Following the acquisition of the Embassy Suites South Jordan Salt Lake City, the Apple Hospitality hotel portfolio includes 224 hotels with 29,601 guestrooms across 37 states.