Apple Hospitality REIT Inc. has acquired the 262-room Embassy Suites by Hilton Madison Downtown for approximately $79.5 million, or $303,000 per key.
“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,” said Nelson Knight, president, real estate and investments, Apple Hospitality. “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 the Monona Terrace Community and Convention Center and the Wisconsin State Capitol, and is near Lake Monona, Lake Mendota and the University of Wisconsin-Madison.
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 12 months ended May 31, RevPAR for the Madison CBD, WI submarket improved by approximately 7% year over year.
In addition, Apple Hospitality REIT revealed the recent disposition of the 82-room SpringHill Suites by Marriott Greensboro in Greensboro, NC, 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. According to the company, there are many conditions to closing on this hotel that have not yet been satisfied, and there can be no assurance that a closing on this hotel will occur under the outstanding purchase contract.
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 guestrooms throughout 37 states and the District of Columbia.
