Apple Hospitality REIT acquired the 262-room Embassy Suites by Hilton Madison Downtown for approximately $79.5 million, or $303,000 per key. Other terms of the deal were not disclosed.
“We are pleased to expand our portfolio with the acquisition of the newly constructed, custom Embassy Suites Madison Downtown and increase our presence within the dynamic and business-friendly Madison market,” Nelson Knight, president, real estate and investments at Apple Hospitality, said in a statement. “Through our longstanding relationship with one of the industry’s leading and most trusted developers, we secured a fixed-price, take-out contract ahead of development, enabling us to acquire this Hotel at an attractive price despite rising construction costs over the course of development. Ideally located in the heart of downtown Madison, we are confident the Hotel is well positioned to serve the city’s wide variety of business and leisure travelers.”
The newly built Embassy Suites Madison Downtown is close to Monona Terrace Community and Convention Center and the Wisconsin State Capitol. Madison’s economy offers a wide variety of business demand generators, including, but not limited to government, insurance, biotechnology, manufacturing and telecommunications, as well as leisure demand generators. According to data provided by STR for the trailing twelve months ended May 31, revenue per available room for the Madison submarket improved approximately 7 percent year-over-year.
In addition, the company also sold the 82-room SpringHill Suites by Marriott Greensboro in Greensboro, N.C., for approximately $7.1 million.
As previously announced, the company continues to have one additional hotel under contract for purchase, a Motto by Hilton that is under development in downtown Nashville, for an anticipated total purchase price of approximately $98.2 million with an expected 260 rooms, which the company anticipates acquiring in late 2025 following completion of construction. The company noted "many conditions to closing" on this hotel that have not yet been satisfied.
Following the acquisition of the Embassy Suites Madison Downtown and the disposition of the SpringHill Suites Greensboro, the Apple Hospitality hotel portfolio includes 224 hotels with 30,066 guest rooms across 37 states and the District of Columbia.