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Apple Hospitality (APLE) Buys Greenville's Hyatt Place for $30M

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Apple Hospitality REIT, Inc. (APLE - Free Report) has acquired the130-room Hyatt Place in downtown Greenville for $30 million. The South Carolina property, which opened in December 2018,boosts the company’s expansion strategy.

The acquisition seems a strategic fit as Greenville is a business-friendly city and comprises several corporations and startups from a variety of industries. The industries include manufacturing, technology, financial services, healthcare, bioscience, and distribution and logistics sectors, which performed well even amid the pandemic, providing the scope for the acquired property to enjoy high demand.

Moreover, the hotel offers easy access to a variety of leisure attractions, including Falls Park on the Reedy, the Peace Center, Bon Secours Wellness Arena and the Greenville Zoo. Hence, with the resumption of travel and recovery in leisure demand, the hotel is well-placed to attract leisure travelers.

In June 2021, Apple Hospitality reported an occupancy of 79%, the average daily rate of $153 and revenue per available room of $121, per the data provided by STR. The results for the property exceeded the company’s full portfolio averages in June 2021, proving to be a suitable asset for acquisition.

Per management, “We are pleased to grow our portfolio with the acquisition of this recently built Hotel in the heart of Greenville’s charming downtown where visitors and residents can enjoy a wealth of amenities, beautiful outdoor spaces, and a thriving arts and entertainment community. The Hyatt Place Greenville Downtown is a great addition to our portfolio, and we are confident in the ongoing strength of business and leisure travel throughout the Greenville area.”

Apple Hospitality remains focused on assets in the Marriott, Hilton and Hyatt brand families, which further help it diversify its portfolio across markets, locations and demand generators.

In July, it inked three separate contracts for the purchase of four hotels for $227 million. Of these, the company has completed two transactions. Last month, it completed the acquisition of the 178-room AC Hotel by Marriott in Portland, ME, for $66.8 million. The acquisition of the157-room Aloft Hotel is expected to complete in the current quarter, while Embassy Suites by Hilton to be constructed in Madison is anticipated to close by 2023.

With a portfolio of 214 hotels and more than 27,900 guest rooms geographically diversified throughout 35 states, the company is well poised to capture healthy demand with the relaxation of regulations related to the pandemic and acceleration in vaccine distribution.

Shares of this Zacks Rank #2 (Buy) company have appreciated 4.9% in the past month, outperforming the industry’s growth of 4.4%.

 

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Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs