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Apple Hospitality (APLE) Grows Portfolio With Embassy Suites
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Apple Hospitality REIT (APLE - Free Report) recently announced the opening and strategic acquisition of the Embassy Suites by Hilton Madison Downtown, marking a significant expansion for the company. With a focus on expanding its portfolio and enhancing shareholder value, Apple Hospitality's move aligns with its commitment to growth and adaptability in the dynamic hospitality market.
The acquisition of the 262-room Embassy Suites by Hilton Madison Downtown was finalized at approximately $79.5 million, reflecting a price of $303,000 per key.
Per Nelson Knight, president at Real Estate and Investments of Apple Hospitality, “Ideally located in the heart of downtown Madison, we are confident the Hotel is well positioned to serve the city’s wide variety of business and leisure travelers.”
The Embassy Suites Madison Downtown, which has recently been constructed, is located at 231 South Pinckney Street in Madison, Wisconsin. Additionally, it offers easy access to Lake Monona, Lake Mendota, the University of Wisconsin-Madison, and a diverse range of restaurants, shops, art galleries, parks, museums and entertainment venues.
Madison's economy boasts various business demand generators, including government, insurance, biotechnology, manufacturing and telecommunications, along with leisure demand generators.
Per data provided by STR for the trailing 12 months ended May 31, 2024, the Madison CBD, WI submarket has experienced an impressive 7% year-over-year improvement in revenue per available room (RevPAR). Given the economic vibrancy of the region, APLE’s latest acquisition seems prudent.
The company has also disclosed the recent sale of the 82-room SpringHill Suites by Marriott Greensboro in Greensboro, NC, for around $7.1 million.
Apple Hospitality has confirmed that they are in the process of purchasing another hotel, namely, a Motto by Hilton, in downtown Nashville, TN. The total purchase price is estimated to be around $98.2 million, with an expected 260 rooms. The acquisition is expected to take place in late 2025 after the completion of construction.
Following the Embassy Suites Madison Downtown acquisition and the disposition of the SpringHill Suites Greensboro, the Apple Hospitality hotel portfolio now boasts 224 hotels with 30,066 guest rooms. Geographically diversified across 37 states and the District of Columbia, the company's strategic expansion positions it as a major player in the upscale, room-focused hotel segment.
Over the past three months, shares of this Zacks Rank #3 (Hold) company have declined 10.3% compared with the industry's fall of 2.1%.
The Zacks Consensus Estimate for PGRE’s 2024 FFO per share has increased 1.3% upward over the past week to 78 cents.
The Zacks Consensus Estimate for LAMR’s current-year FFO per share has moved 3.7% northward in the past two months to $8.03.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.
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Apple Hospitality (APLE) Grows Portfolio With Embassy Suites
Apple Hospitality REIT (APLE - Free Report) recently announced the opening and strategic acquisition of the Embassy Suites by Hilton Madison Downtown, marking a significant expansion for the company. With a focus on expanding its portfolio and enhancing shareholder value, Apple Hospitality's move aligns with its commitment to growth and adaptability in the dynamic hospitality market.
The acquisition of the 262-room Embassy Suites by Hilton Madison Downtown was finalized at approximately $79.5 million, reflecting a price of $303,000 per key.
Per Nelson Knight, president at Real Estate and Investments of Apple Hospitality, “Ideally located in the heart of downtown Madison, we are confident the Hotel is well positioned to serve the city’s wide variety of business and leisure travelers.”
The Embassy Suites Madison Downtown, which has recently been constructed, is located at 231 South Pinckney Street in Madison, Wisconsin. Additionally, it offers easy access to Lake Monona, Lake Mendota, the University of Wisconsin-Madison, and a diverse range of restaurants, shops, art galleries, parks, museums and entertainment venues.
Madison's economy boasts various business demand generators, including government, insurance, biotechnology, manufacturing and telecommunications, along with leisure demand generators.
Per data provided by STR for the trailing 12 months ended May 31, 2024, the Madison CBD, WI submarket has experienced an impressive 7% year-over-year improvement in revenue per available room (RevPAR). Given the economic vibrancy of the region, APLE’s latest acquisition seems prudent.
The company has also disclosed the recent sale of the 82-room SpringHill Suites by Marriott Greensboro in Greensboro, NC, for around $7.1 million.
Apple Hospitality has confirmed that they are in the process of purchasing another hotel, namely, a Motto by Hilton, in downtown Nashville, TN. The total purchase price is estimated to be around $98.2 million, with an expected 260 rooms. The acquisition is expected to take place in late 2025 after the completion of construction.
Following the Embassy Suites Madison Downtown acquisition and the disposition of the SpringHill Suites Greensboro, the Apple Hospitality hotel portfolio now boasts 224 hotels with 30,066 guest rooms. Geographically diversified across 37 states and the District of Columbia, the company's strategic expansion positions it as a major player in the upscale, room-focused hotel segment.
Over the past three months, shares of this Zacks Rank #3 (Hold) company have declined 10.3% compared with the industry's fall of 2.1%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the broader REIT sector are Paramount Group (PGRE - Free Report) and Lamar Advertising (LAMR - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for PGRE’s 2024 FFO per share has increased 1.3% upward over the past week to 78 cents.
The Zacks Consensus Estimate for LAMR’s current-year FFO per share has moved 3.7% northward in the past two months to $8.03.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.