Apple Hospitality REIT, Inc. (NYSE: APLE) announced the acquisition of a 55-room independent boutique hotel in Richmond, Virginia, for a purchase price of approximately $7 million, or $125,000 per key.
“We are pleased to add this unique property to our portfolio and expand our presence in the dynamic downtown Richmond market,” said Nelson Knight, Executive Vice President and Chief Investment Officer of Apple Hospitality. “We plan to renovate and reposition the Hotel, incorporating services and amenities that are consistent with our existing rooms-focused portfolio of hotels. The Hotel is located approximately four blocks from Apple Hospitality’s headquarters and one block from our dual-branded Courtyard and Residence Inn. It is our intention that the Hotel will remain independent, and we will leverage our deep knowledge of the Richmond market to create a compelling product for our guests and maximize property-level performance.”
The Hotel, currently known as The Berkeley Hotel, is located at 1200 East Cary Street in Richmond, Virginia, and benefits from the city’s wide-variety of business, education, government, health care and leisure demand generators. Situated within the historic Shockoe Slip area of downtown Richmond, the Hotel is convenient to the Virginia Commonwealth University School of Medicine, the Virginia State Capitol, the Federal Reserve Bank of Richmond, Richmond’s Main Street Station and numerous corporate offices, financial institutions and residential properties. An array of attractions and amenities are near the Hotel including museums, historic sites, restaurants, retail shops and outdoor activities along the James River. According to data provided by STR for the trailing 12 months ended August 31, 2019, revenue per available room (RevPAR) for the Central Business District/Airport submarket of Richmond improved by 4.4 percent, as compared to the prior 12-month period.
Following this acquisition, the Apple Hospitality portfolio includes 235 hotels with more than 30,000 guest rooms geographically diversified throughout 34 states.
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