Apple Hospitality REIT, Inc. announced the acquisition of the 178-room AC Hotel by Marriott in Portland, Maine, for a total purchase price of approximately $66.8 million, or approximately $375,000 per key.
“We are pleased to expand our presence in the vibrant Portland market, which benefits from a variety of demand generators, including leisure, corporate, health care, government, and education,” said Nelson Knight, President, Real Estate and Investments of Apple Hospitality. “With the acquisition of the AC Hotel and the nearby Aloft Hotel that we expect to acquire following completion of construction in the third quarter of this year, we will own three hotels along Portland’s dynamic waterfront. The three hotels will be operated by the same management company which, combined with our exceptional asset management, will create additional operational synergies. Through our recent and pending transactional activity, we are refining, enhancing, and growing our existing portfolio while increasing our exposure to markets with strong relative growth trajectories. We are confident the combined impact of these efforts will maximize long-term value for our shareholders.”
The AC Hotel Portland Downtown Waterfront opened in July 2018 and is located at 158 Fore Street in Portland, Maine, with unobstructed views of Casco Bay. The Hotel is just a short walk from Portland’s historic Old Port district, Casco Bay Lines, East End Beach, Portland’s cruise ship terminals, the green space of the Portland Trails, and a variety of restaurants, art galleries, and entertainment venues. In addition to its ideal location for leisure travelers, the Hotel is also convenient to the University of Southern Maine, Maine Medical Center, and numerous corporate offices. According to data provided by STR, revenue per available room (“RevPAR”) for the Portland Downtown/International Jetport, Maine submarket improved by approximately 10% for the month of June 2021, as compared to the month of June 2019. With results exceeding the Company’s full portfolio averages in June 2021, the AC Hotel reported occupancy of 85%, an average daily rate of $256, and RevPar of $217 for the month.
Following this acquisition, the Apple Hospitality portfolio includes 213 hotels with approximately 27,800 guest rooms geographically diversified throughout 35 states.