Apple Hospitality REIT of Richmond, Virginia, has acquired the 175-room Courtyard by Marriott Salt Lake City Downtown for $48.1 million; the 159-room Hyatt House Salt Lake City/Downtown for approximately $34.3 million; and a corresponding 346-space parking garage for approximately $9.1 million, which serves both hotels as well as the surrounding area.
“While overall industry transaction volume remains muted, the strength of our operating performance and our relative liquidity position have provided us with unique opportunities to pursue accretive acquisitions and to grow our portfolio,” says Nelson Knight, president of real estate and investments at Apple Hospitality REIT. “The acquisition of the Courtyard and the Hyatt House in downtown Salt Lake City expands our presence within the vibrant Salt Lake market, an area well known for its business-friendly environment, attractive cost of living, cultural attractions, and proximity to outdoor recreational activities, which has seen significant economic growth in recent years and is poised for continued expansion. … We are actively underwriting additional opportunities and are well positioned to further add to our portfolio in the coming months.”
The Courtyard opened in Oct. 2015 and the Hyatt House, which recently underwent a full soft-goods renovation, opened in Jan. 2015. The hotels sit adjacent to one another and are located directly across the street from the Delta Center, within walking distance of Salt Palace Convention Center, and convenient to Temple Square, Utah State Capitol, the University of Utah, Salt Lake City International Airport, numerous performing arts venues, and the Cottonwood Canyons and Park City ski areas.
In addition, Apple Hospitality REIT has two other hotels under contract for purchase, the 146-room Residence Inn by Marriott Seattle South/Renton for approximately $55.5 million and the 192-room Embassy Suites by Hilton South Jordan Salt Lake City for approximately $36.8 million. Assuming all conditions to closing are met, Apple Hospitality REIT anticipates acquiring the hotel in Renton and the hotel in South Jordan during the fourth quarter of 2023.
Following the acquisition of the downtown Salt Lake City hotels, the Apple Hospitality hotel portfolio includes 222 hotels with 29,263 guest rooms geographically diversified throughout 37 states.