Transactions and financing heat up

In acquisition and financing news, Apple Hospitality REIT has acquired an AC Hotel in Maine, while Hall Structured Finance and Arriba Capital have closed construction loans for properties in Colorado Spring, CO and a Nashville suburb, respectively.

Apple Hospitality REIT acquires AC Hotel in Portland, ME
Apple Hospitality REIT Inc. has acquired the 178-room AC Hotel Portland Downtown Waterfront in Portland, ME, for a total purchase price of approximately $66.8 million, or approximately $375,000 per key.

The hotel, which opened in July 2018 and has unobstructed views of Casco Bay, is near Portland’s historic Old Port district, Casco Bay Lines, East End Beach, Portland’s cruise ship terminals and Portland Trails.

According to data provided by STR, RevPAR for the Portland Downtown/International Jetport, Maine submarket improved by approximately 10% for this month, as compared to the month of June 2019. With results exceeding the company’s full portfolio averages this June, the hotel reported occupancy of 85%, ADR of $256 and RevPAR of $217 for the month.

Following this acquisition, the Apple Hospitality portfolio includes 213 hotels with approximately 27,800 guestrooms in 35 states.

HALL Structured Finance closes $55.6M loan
Dallas-based HALL Structured Finance (HSF) has closed a new first lien construction loan totaling $55.6 million to finance the development of a dual-flag SpringHill Suites/Element Hotel located in downtown Colorado Springs, CO. Construction is currently underway, and the project is expected to open in spring 2022. The project developer is a joint venture between Olive Real Estate Group, Hotel Equities, Hotel Operations Services and Colarelli Construction. Hotel Equities will manage the hotels upon opening.

The 136-key SpringHill Suites will include all suites featuring separate working and sleeping areas, office desks and kitchenettes. The 125-key extended-stay Element Hotel will feature fully equipped kitchens with stainless steel appliances and standard rooms offering nearly nine-ft. ceiling heights. The hotels will have shared amenities including an open-air courtyard with lounge seating, a business center, indoor pool with a whirlpool, complimentary breakfast and a fitness center. Additional amenities will include meeting and event space, a ground-floor restaurant with outdoor seating and a 6,700-sq.-ft. rooftop bar, restaurant and lounge.

Arriba Capital closes $18.5M construction loan
Arriba Capital recently closed an $18.5M ground-up conventional construction loan for a Hyatt Place in a suburb of Nashville. In addition to the construction loan, Arriba arranged a large, complex ground lease on the property.

The borrower is a privately held hospitality management and development group based in the Southeast. Arriba has financed multiple projects for the borrower.