Apple Hospitality REIT Acquires Home2 Suites by Hilton Orlando Airport for $20.7 Million or $162K per Key
Apple Hospitality REIT, Inc. (NYSE: APLE) (the "Company" or "Apple Hospitality") today announced the opening and acquisition of the new 128-room Home2 Suites by Hilton Orlando Airport (the "Hotel") for a purchase price of $20.7 million, or approximately $162,000 per key.
"This beautiful, newly constructed Home2 Suites adds a presence for us near Florida's busiest airport and is a great addition to our portfolio," said Nelson Knight, Executive Vice President and Chief Investment Officer of Apple Hospitality. "Not only will the Hotel benefit from travelers visiting the many leisure attractions that Orlando and the surrounding areas are known for, the market is also home to a variety of business and educational demand generators. We secured attractive per-key pricing prior to the start of construction of the Hotel, which we believe adds meaningful value at a time when construction costs are rising."
The Hotel is located at 5445 Hazeltine National Drive in Orlando, Florida, less than three miles from Orlando International Airport. According to the Greater Orlando Aviation Authority, Orlando International Airport welcomed more than 47 million passengers during the year ended December 31, 2018. Passenger traffic at the airport has increased 33 percent since 2014, prompting an ongoing terminal expansion and facility enhancement project that will increase the airport's capacity for additional flights. In addition to its proximity to the airport and related businesses, the Hotel is near a variety of dining and shopping amenities, as well as numerous corporate offices, training facilities and distribution centers. According to data provided by STR for the year ended December 31, 2018, RevPAR for the airport area submarket of Orlando improved by 4.5 percent, as compared to 2017.
Following this acquisition, the Apple Hospitality portfolio includes 243 hotels with more than 31,000 guest rooms geographically diversified throughout 34 states.