RICHMOND, Va.–Apple Hospitality REIT, Inc. (NYSE: APLE) (the “Company” or “Apple Hospitality”) today announced that it has completed the acquisition of the 192-room Embassy Suites by Hilton South Jordan Salt Lake City (the “Hotel”) for approximately $36.8 million, or $191,000 per key.
“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.”
The Embassy Suites South Jordan Salt Lake City opened in March 2018 and is located at 10333 South Jordan Gateway, South Jordan, Utah. The Hotel is located 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. In addition, the Hotel is convenient to The Shops at South Town, South Jordan Towne Center, America First Field, a variety of restaurants, performing arts venues, outdoor recreational spaces, and the Cottonwood Canyons ski areas. A part of the Silicon Slopes region, South Jordan continues to expand its robust community and is home to a diverse range of businesses, including technology, health care, distribution services and retail. According to data provided by STR for the trailing twelve months ended September 30, 2023, as compared to the same period of 2022, revenue per available room (“RevPAR”) for the Salt Lake City South, UT submarket improved by approximately 8%.
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, Wisconsin, 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, Tennessee, 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.
There are many conditions to closing on each of these hotels that have not yet been satisfied, and there can be no assurance that closings on these hotels will occur 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 guest rooms geographically diversified throughout 37 states.
