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  • Writer's pictureRealFacts Editorial Team

Apple Hospitality REIT (NYSE: APLE): Strategic Moves in 2024 Reflect Robust Investment Strategy

Apple Hospitality REIT property

Apple Hospitality REIT (NYSE: APLE), one of the most active real estate investment trusts (REITs) in the market, recently closed two significant transactions, highlighting its strategic approach to asset management and portfolio expansion. According to a report by Rob Schneider on June 21, 2024, the Richmond, Virginia-based REIT finalized the acquisition of the 262-key Embassy Suites by Hilton Madison Downtown in Wisconsin for approximately $79.5 million. Concurrently, it sold the 82-key SpringHill Suites by Marriott Greensboro in North Carolina for $7.1 million.

Nelson Knight, President of Real Estate and Investments at Apple Hospitality, expressed satisfaction with the acquisition in Madison, emphasizing the REIT’s ability to secure the property at an attractive price despite rising construction costs. This acquisition expands Apple Hospitality’s presence in the dynamic and business-friendly Madison market, where RevPAR has improved by 7% year-over-year as of May 31, according to STR data.

The REIT's portfolio now consists of 224 hotels and 30,066 rooms across 37 states and the District of Columbia. Notably, Apple Hospitality is set to further expand its portfolio with the planned acquisition of the 260-key Motto by Hilton in downtown Nashville, Tennessee, expected to close in late 2025 for approximately $98.2 million.

In 2024, Apple Hospitality has demonstrated a robust investment strategy. Earlier this year, the REIT acquired the 234-key AC Hotel by Marriott Washington DC for $116.8 million and the 299-key SpringHill Suites by Marriott Las Vegas Convention Center for $75 million. These acquisitions exemplify Apple Hospitality's competitiveness in urban markets, supported by its ready access to capital and ability to bid on assets without financing contingencies.

Justin Knight, CEO of Apple Hospitality, highlighted the REIT’s consistent focus on upscale select-service hotels within the Marriott, Hilton, and Hyatt families. This strategic consistency, coupled with low leverage and minimal overhead for interest payments, has positioned Apple Hospitality to maintain a competitive edge in the market.

With a strong financial position and flexible capital access, Apple Hospitality REIT continues to strategically navigate the competitive landscape, capitalizing on opportunities to expand and optimize its portfolio. This strategic agility is expected to drive sustained growth and value for investors, particularly as the REIT leverages its financial strength and market expertise to secure high-quality assets in key markets.


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