Apple Hospitality REIT acquired the 126-room Homewood Suites by Hilton Tampa-Brandon for a total purchase price of $18.8 million, or approximately $149,000 per key. Other terms and conditions were not disclosed.
“We are pleased to expand our portfolio with the acquisition of the Homewood Suites Tampa-Brandon, which is ideally located adjacent to our Embassy Suites in the same market,” Nelson Knight, president, Real Estate and Investments of Apple Hospitality, said in a statement. “Our acquisition of this Hotel represents a unique opportunity to expand our ownership in a submarket that continues to perform well for us at a purchase price below replacement cost. The Hotel was offered for sale by the loan servicer, and the $18.8 million purchase price represents a 12 percent cap rate on trailing twelve-month results through April of this year and a high single-digit cap rate after all anticipated capital expenditures. We anticipate that additional upside from operational synergies and improved market positioning following our planned renovation will further enhance returns on our investment. Our execution of this transaction in the current environment illustrates the underlying strength of our platform and our ability to effectively and efficiently deploy capital to maximize total shareholder returns over the long term.”
Located in Tampa, Fla., the hotel is just a short drive from downtown Tampa, the third largest city in Florida, has seen robust economic growth in recent years and benefits from a wide variety of business and leisure demand generators that span conventions, sporting events, life sciences and health care, academics, manufacturing and logistics, insurance, financial and professional services, technology, and more. Numerous corporate offices have locations in Tampa, with Coca-Cola Beverages Florida, USAA, Optum, Progressive Insurance, Citi Tampa, JPMorganChase, Cirkul, Spectrum Business and Rooms To Go, among others, located near the Hotel. Leisure attractions and sports tourism drive significant travel to the area, and the Hotel is a short drive from the Florida State Fairgrounds, Busch Gardens Tampa Bay, The Florida Aquarium, ZooTampa at Lowry Park, the Tampa Riverwalk, Amalie Arena, Raymond James Stadium, George M. Steinbrenner Field and Tropicana Field. Additionally, the hotel is convenient to HCA Florida Brandon Hospital, Tampa General Hospital’s Brandon Healthplex, the recently renovated Tampa Convention Center, the University of South Florida and the University of Tampa.
According to data provided by STR for the trailing twelve months ended April 30, revenue per available room for the Tampa East, Fla. submarket improved by approximately 15 percent year over year.
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. The company also continues to have one hotel under contract for sale, its 206-room Houston Marriott Energy Corridor for a gross sales price of approximately $16.0 million. The company expects to complete the sale of the hotel in the third quarter 2025. There are many conditions to closing on the purchase and sale of these hotels that have not yet been satisfied, and there can be no assurance that closings will occur under the outstanding agreements.
Following the acquisition of the Homewood Suites Tampa-Brandon, the Apple Hospitality hotel portfolio includes 221 hotels with 29,893 guestrooms geographically diversified throughout 37 states and the District of Columbia.