Apple Hospitality REIT Inc. has completed the acquisition of the 146-room Residence Inn by Marriott Seattle South/Renton for approximately $55.5 million, or $380,000 per key, from MCR.
“We are pleased to further diversify and enhance our portfolio with the acquisition of this recently-built, extended-stay hotel in Renton,” said Nelson Knight, president, real estate and investments, Apple Hospitality. “Renton is well known for its strong business environment that spans aviation, aerospace, manufacturing, technology, life science and medical. Located in close proximity to downtown Seattle and downtown Bellevue, Renton provides easy access to sporting events and to the area’s many outdoor activities. The Residence Inn is ideally located near a variety of guest amenities and benefits from the diversity of Renton’s business and leisure demand generators. Given the strength of our operating performance and the flexibility of our balance sheet, we are uniquely positioned within the current transaction environment to be acquisitive and to meaningfully enhance long-term shareholder value. We have three additional hotels under contract for purchase and continue to underwrite numerous opportunities.”
The hotel opened in August 2019 and is less than one mile from The Boeing Company’s Renton production facility, known for its assembly of the Boeing 737 family of commercial airplanes, and just over one mile from PACCAR Inc’s Kenworth truck assembly plant in Renton. In addition, the property is situated across from Gene Coulon Memorial Beach Park, which provides access to the southeastern shore of Lake Washington, near a variety of stores and restaurants, and convenient to the Virginia Mason Athletic Center, home of the Seattle Seahawks’ headquarters and training facility. Tukwila Station, serving the Sounder commuter rail, and Seattle-Tacoma International Airport are each just a short drive from the hotel.
According to data provided by STR for the trailing twelve months ended Aug. 31, 2023, as compared to the same period of 2022, RevPAR for the Bellevue/East, WA submarket improved by more than 16%.
MCR purchased the hotel in June 2021 for $41.8 million, or approximately $286,000 per key.
