Daily market intelligence on mortgages, equity raising, investment sales, and CMBS.

Wednesday, 27 February 2019

Apple Hospitality Selling 9 Hotels for $95Mln; Paying $31.7Mln for St. Paul, Minn., Property

Written by 
Rate this item
(0 votes)

Commercial Real Estate Direct Staff Report

Apple Hospitality REIT Inc. has agreed to sell nine properties with 1,054 rooms for $95 million and pay $31.7 million, or $198,125/room, for the Hampton Inn & Suites in St. Paul, Minn.

The nine properties the Richmond, Va., company is selling are part of a 16-hotel portfolio that a private-equity firm had agreed to buy last year. That deal fell through this month, but the same firm has agreed to still buy nine of the hotels.

Apple Hospitality said the deal is expected to close by June and the sales price will result in a 7.5 percent capitalization rate. The REIT is also marketing for sale the remaining seven properties in that portfolio, which have a total of 596 rooms.

It is selling properties in smaller markets that generate less revenue per available room than the company's average. For instance, the nine hotels it has under contract to sell generated an average of about $75 of RevPAR last year. That compares with the $104.66 average RevPAR for the entire Apple Hospitality portfolio.

The REIT is also acquiring hotels that are in larger markets and have been built in the past few years or are under construction.

To that end, it has agreed to buy the 160-room Hampton Inn in St....





weekly-call-to-action

“The Weekly”

“The Weekly” is Commercial Real Estate Direct’s PDF newsletter, sent to subscribers every Friday morning. With over 100 news stories published on Commercial Real Estate Direct each week, “The Weekly” features the top stories in commercial real estate that industry participants need to know first. “The Weekly” also contains:

  • Breaking mortgage, CMBS, and REIT news

  • Quarterly league tables with rankings of B-piece buyers, book runners, and lenders

  • Industry moves and changes in “The Insider“

Additional Info

  • Syndicate to Realpoint: No
  • Sector: Hotel & Resort
  • Subject: Property Acquisitions (ACQ)
  • Private: Yes
Read 261 times

Data Digest

 

CMBS DELINQUENCY VOLUME

dqdataFP1

 

CMBS SPECIAL SERVICING VOLUME

sschartfp

Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44

 

RCA CPPI

 

cppichart FP

 

 

CMBS 2.0 Spreads

AAAspreads

Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41

 

 

 

REITCafe

  • Challenging Retail Environment Weights on REITs
    Mixed economic news is weighing on retail markets, pushing REIT performance down in 2015. This week, the National Retail Federation announced that back-to-school spending is expected to be down 9.3% in 2015. This news came on the heels of a report from the Commerce Department stating that retail sales declined 0.3%...
     
  • US REITs Feeling Effects from Turmoil in Greece and China
    International economic forces have taken center stage this week, affecting both US stock markets and REITs. The crash in the Chinese stock market and ongoing concerns about the future of Greece in the eurozone drove markets down during the first half of the week. REITs fared better than the overall market...

  • What Does Increased Construction Mean for Apartment REITs?
    REITs so far this year have raised $17.1 billion of capital through the sale of unsecured notes, bringing the total raised over the past two and a half years to just more than $75 billion. That’s more than they raised during the previous five years. The massive volume shouldn’t be a surprise as it comes while the yield from 10-year Treasury bonds, the benchmark...
shouldn’t be a surprise as it comes while the yield from 10-year Treasury bonds, the benchmark against which most REIT’s price their bonds
warehouse-backstage