Apple Hospitality REIT, Inc. (NYSE: APLE) yesterday announced that it has closed on the previously announced acquisition of the newly-constructed, dual-branded Hilton Garden Inn and Home2 Suites by Hilton property in Birmingham, Alabama, with a combined total of 210 rooms, for a purchase price of approximately $38.4 million, or $183,000 per key.
“We are pleased to add this new, unique, dual-branded property to our portfolio of hotels and enter the resurgent downtown Birmingham market,” said Nelson Knight, Executive Vice President and Chief Investment Officer of Apple Hospitality REIT. “Our per-key purchase price for these new hotels in a growing market is very attractive, highlighting the benefits of entering into fixed-price contracts with developers prior to construction. The property is ideally located with great exposure to a wide variety of corporate, medical, academic, government and leisure demand generators.”
The new Hilton Garden Inn and Home2 Suites by Hilton, located at 250 18th Street South in Birmingham, Alabama, are situated in the heart of Birmingham’s downtown business district with easy access to the University of Alabama at Birmingham, Children’s of Alabama pediatric hospital, the Birmingham VA Medical Center, Regions Financial Corporation’s headquarters, numerous corporate offices, and a variety of museums, restaurants and entertainment venues. According to data provided by Smith Travel Research (STR) for the seven-month period ending July 31, 2017, RevPAR for the Birmingham, Alabama market improved by more than seven percent, as compared to the same period of 2016.
Following this acquisition, the Apple Hospitality portfolio includes 237 hotels, with more than 30,000 guestrooms, geographically diversified throughout 33 states.
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