Apple Hospitality REIT buys newly opened Hyatt dual-branded project

George Sell George Sell Uploaded 28 August 2020

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US: Apple Hospitality REIT has announced the opening and acquisition of the 105-key Hyatt House and 154-key Hyatt Place in Tempe, Arizona.

The purchase price was approximately $64.6 million, which equates to around $249,000 per key.

The hotels comprise a dual-branded complex located at 601 East 6th Street in Tempe, Arizona, on Arizona State University’s (ASU) Tempe campus, across from Desert Financial Arena, within walking distance of Sun Devil Stadium, a short drive from Phoenix Sky Harbor International Airport, and in close proximity to a Valley Metro Rail stop.

The hotels are part of the initial phase of the Novus Innovation Corridor, a mixed-use development integrated with ASU’s Tempe campus that will house offices, residences, retail stores and restaurants throughout 355 acres. In addition to a variety of leisure and collegiate demand generators, Tempe is also home to numerous corporate offices including State Farm, Insight Enterprises, Inc., Carvana, Honeywell International, ADP, Wells Fargo and many others.

“We are pleased to enhance the diversification of our portfolio with the acquisition of these newly developed Hotels in the dynamic Tempe market,” said Nelson Knight, president, real estate and investments, Apple Hospitality. “Ideally located on the Tempe campus of Arizona State University near premier athletic facilities and the planned multi-sports arena, the Hotels are well positioned to serve the area’s business and leisure travellers. As part of Apple Hospitality’s commitment to sustainability and the intentions of ASU, the Hotels were designed and developed in line with LEED certification requirements. We contracted for the development of the Hotels in 2018 and are pleased to have secured attractive per-key pricing prior to the start of construction, which we believe adds meaningful value and speaks to the strength of our relationship with the developer.”

Following this acquisition, the Apple Hospitality portfolio includes 235 hotels with more than 30,000 guest rooms throughout 34 US states.

 

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