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Apple Hospitality (APLE) Grows Portfolio With Embassy Suites
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Apple Hospitality REIT (APLE - Free Report) recently completed the strategic acquisition of the Embassy Suites by Hilton South Jordan Salt Lake City, marking a significant expansion for the company. With a focus on cultivating 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 192-room Embassy Suites in South Jordan was finalized at approximately $36.8 million, reflecting a price of $191,000 per key. Nelson Knight, the president of Real Estate and Investments at Apple Hospitality, expressed enthusiasm about the expansion, citing South Jordan's thriving economic environment and projected growth. The location's easy access to demand generators for business, leisure and group travel positions the hotel as a valuable addition to Apple Hospitality's diverse portfolio.
The Embassy Suites, opened in March 2018, strategically sits at 10333 South Jordan Gateway, South Jordan, Utah. Its proximity to the Utah Transit Authority’s FrontRunner South Jordan Station and Interstate 15 provides direct links to downtown Salt Lake City and the Salt Lake City International Airport. Additionally, the hotel is conveniently located near prominent attractions, such as The Shops at South Town, South Jordan Towne Center and America First Field, enhancing its appeal to a broad range of travelers.
South Jordan's status as part of the Silicon Slopes region contributes to its robust community, housing diverse businesses in technology, healthcare, distribution services and retail. Per data provided by STR for the trailing 12 months ended Sep 30, 2023, compared to the same period of 2022, the Salt Lake City South, Utah submarket has experienced an impressive 8% improvement in revenue per available room (RevPAR), showcasing the economic vibrancy of the region.
Apple Hospitality is not resting on its laurels, with two additional hotels under contract for purchase. An Embassy Suites by Hilton in downtown Madison, WI, and a Motto by Hilton to be developed in downtown Nashville, TN, are anticipated to further strengthen the company's portfolio.
Following the Embassy Suites acquisition, Apple Hospitality's hotel portfolio now boasts 224 hotels with 29,601 guest rooms. Geographically diversified across 37 states, the company's strategic expansion positions it as a major player in the upscale, room-focused hotel segment.
Shares of Apple Hospitality, currently carrying a Zacks Rank #3 (Hold), have soared 13.4% in the past three months against the industry’s decrease of 0.8%.
The Zacks Consensus Estimate for Iron Mountain’s current-year funds from operations (FFO) per share has moved marginally northward over the past three months to $3.97.
The Zacks Consensus Estimate for STAG Industrial’s 2023 FFO per share has moved 1.3% upward in the past month to $2.28.
Note: Anything related to earnings presented in this write-up represents FFO — a widely used metric to gauge the performance of REITs.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.
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Apple Hospitality (APLE) Grows Portfolio With Embassy Suites
Apple Hospitality REIT (APLE - Free Report) recently completed the strategic acquisition of the Embassy Suites by Hilton South Jordan Salt Lake City, marking a significant expansion for the company. With a focus on cultivating 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 192-room Embassy Suites in South Jordan was finalized at approximately $36.8 million, reflecting a price of $191,000 per key. Nelson Knight, the president of Real Estate and Investments at Apple Hospitality, expressed enthusiasm about the expansion, citing South Jordan's thriving economic environment and projected growth. The location's easy access to demand generators for business, leisure and group travel positions the hotel as a valuable addition to Apple Hospitality's diverse portfolio.
The Embassy Suites, opened in March 2018, strategically sits at 10333 South Jordan Gateway, South Jordan, Utah. Its proximity to the Utah Transit Authority’s FrontRunner South Jordan Station and Interstate 15 provides direct links to downtown Salt Lake City and the Salt Lake City International Airport. Additionally, the hotel is conveniently located near prominent attractions, such as The Shops at South Town, South Jordan Towne Center and America First Field, enhancing its appeal to a broad range of travelers.
South Jordan's status as part of the Silicon Slopes region contributes to its robust community, housing diverse businesses in technology, healthcare, distribution services and retail. Per data provided by STR for the trailing 12 months ended Sep 30, 2023, compared to the same period of 2022, the Salt Lake City South, Utah submarket has experienced an impressive 8% improvement in revenue per available room (RevPAR), showcasing the economic vibrancy of the region.
Apple Hospitality is not resting on its laurels, with two additional hotels under contract for purchase. An Embassy Suites by Hilton in downtown Madison, WI, and a Motto by Hilton to be developed in downtown Nashville, TN, are anticipated to further strengthen the company's portfolio.
Following the Embassy Suites acquisition, Apple Hospitality's hotel portfolio now boasts 224 hotels with 29,601 guest rooms. Geographically diversified across 37 states, the company's strategic expansion positions it as a major player in the upscale, room-focused hotel segment.
Shares of Apple Hospitality, currently carrying a Zacks Rank #3 (Hold), have soared 13.4% in the past three months against the industry’s decrease of 0.8%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the REIT sector are Iron Mountain (IRM - Free Report) and STAG Industrial, Inc. (STAG - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Iron Mountain’s current-year funds from operations (FFO) per share has moved marginally northward over the past three months to $3.97.
The Zacks Consensus Estimate for STAG Industrial’s 2023 FFO per share has moved 1.3% upward in the past month to $2.28.
Note: Anything related to earnings presented in this write-up represents FFO — a widely used metric to gauge the performance of REITs.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.