Apple Hospitality REIT has acquired and opened the 260-room Motto by Hilton Nashville Downtown for approximately $98.2 million, or $378,000 per key.
“We are pleased to expand our portfolio with the acquisition of the newly constructed, innovative Motto by Hilton Nashville Downtown and increase our exposure to the dynamic and vibrant Nashville market,” Nelson Knight, president, real estate and investments of 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 per-key price within market. The overarching demand trends in Nashville continue to be strong, with resilient leisure demand supported by a wealth of entertainment and sporting venues and strengthening business demand bolstered by the continued movement of both large and small corporates into Nashville’s business-friendly environment. This acquisition represents a new, complementary brand for our existing rooms-focused portfolio, and we are confident its appeal will further enhance its ideal location just a few blocks off Broadway and our ability to drive strong operating performance over the long term.”
The newly built Motto Nashville Downtown is within walking distance of the Country Music Hall of Fame and Museum, Bridgestone Arena, Ryman Auditorium and the Music City Center, as well as the music and entertainment venues along Broadway and Riverfront Park. Nashville’s “vibrant economy and strong tourism appeal” offer a “diverse variety of demand generators,” the statement claimed, including leisure, music and entertainment, sporting events, conventions, healthcare, manufacturing, technology and academic. According to data provided by STR for the trailing twelve months ended Oct. 31, revenue per available room for the Nashville CBD/Downtown submarket was approximately $211, approximately 110 percent above industry RevPAR as reported by STR and approximately 79 percent above the company’s RevPAR for the same period.
Following the acquisition of the Motto Nashville Downtown, the Apple Hospitality hotel portfolio includes 217 hotels with 29,580 guest rooms across 37 states and the District of Columbia.