Apple Hospitality REIT, Inc. has just announced its acquisition of the 234-room AC Hotel by Marriott Washington DC Convention Center for approximately $116.8 million, amounting to $499,000 per key. The hotel, located at 601 K Street NW, Washington, D.C., offers premium amenities such as modern guest rooms, a 1,500 square-foot fitness center, a rooftop bar and restaurant with city views, and ground floor retail space. It is also LEED certified and features a green roof system.
According to data provided by STR for the trailing twelve months ended December 31, 2023, the revenue per available room (RevPAR) for the Washington DC CBD submarket improved by approximately 21% compared to the same period in 2022.
Following this acquisition, the Apple Hospitality hotel portfolio now includes 224 hotels with 29,886 guest rooms, spread across 37 states and the District of Columbia. The portfolio is geographically diversified throughout 87 markets.
Moreover, the company has two additional hotels under contract for purchase. This includes an Embassy Suites by Hilton in downtown Madison, Wisconsin, with an anticipated total purchase price of approximately $79.3 million and an expected 262 rooms, and a Motto by Hilton to be developed in downtown Nashville, Tennessee, with an anticipated total purchase price of approximately $98.2 million and an expected 260 rooms.
The market has reacted to these announcements by moving the company's shares 1.8% to a price of $16.46. Check out the company's full 8-K submission here.
