Apple Hospitality REIT Inc. has completed the acquisition of the 192-room Embassy Suites by Hilton South Jordan Salt Lake City for approximately $36.8 million, or $191,000 per key.
“We are pleased to expand our portfolio with the acquisition of this ideally located Embassy Suites by Hilton in South Jordan,” said Nelson Knight, president, real estate and investments, Apple Hospitality. “South Jordan is a thriving, dynamic city in the Salt Lake City metropolitan area that has experienced strong economic, employment and population growth in recent years and is projected to see continued expansion well into the future. With its central location on the Wasatch Front, South Jordan offers easy access to a wide range of demand generators for business, leisure and group travel unique to Utah. As we continue to explore different opportunities, we remain focused on pursuing transactions that cultivate and refine our current portfolio and enhance long-term shareholder value. We have two additional hotels under contract for purchase and continue to underwrite numerous opportunities.”
The hotel opened in March 2018 next to the Utah Transit Authority’s FrontRunner South Jordan Station and along Interstate 15, both of which provide direct access to downtown Salt Lake City and the Salt Lake City International Airport. In addition, the property is near The Shops at South Town, South Jordan Towne Center, America First Field and the Cottonwood Canyons ski areas.
A part of the Silicon Slopes region, South Jordan continues to expand its community and is home to a diverse range of businesses, including technology, health care, distribution services and retail, the company reported. According to data provided by STR for the trailing 12 months ended Sept. 30, as compared to the same period of 2022, RevPAR for the Salt Lake City South submarket improved by approximately 8%.
The company also has two additional hotels under contract for purchase:
- An Embassy Suites by Hilton currently under development in downtown Madison, WI, for an anticipated total purchase price of approximately $78.6 million with an expected 260 rooms, which the company anticipates acquiring in mid-2024 following completion of construction.
- A Motto by Hilton to be developed in downtown Nashville for an anticipated total purchase price of approximately $96.7 million with an expected 256 rooms, which the company anticipates acquiring in 2025 following completion of construction.
There are many conditions to closing on each of these hotels that have not yet been satisfied, and there can be no assurance that closings on these hotels will occur under the outstanding purchase contracts.
Following the acquisition of the Embassy Suites South Jordan Salt Lake City, the Apple Hospitality hotel portfolio includes 224 hotels with 29,601 guestrooms in 37 states.
