Dive Brief:
- Richmond, Virginia-based Apple Hospitality REIT Inc. acquired the 234-room AC Hotel by Marriott Washington DC Convention Center for approximately $116.8 million, or nearly $500,000 per key, the company announced Wednesday.
- Situated in downtown Washington, D.C., near several local attractions and convention centers, the hotel offers “comfortable, modern” guest rooms and amenities, including a 1,500-square-foot fitness center and a rooftop bar and restaurant with views of the city.
- With the acquisition, Apple Hospitality expands its portfolio of upscale hotel properties located in markets with demand drivers that appeal to a range of leisure, business and group travelers.
Dive Insight:
With the acquisition of the AC Hotel Washington DC Convention Center, Apple Hospitality REIT establishes its footing in downtown Washington, D.C., a market the investment trust has “tracked and wanted to have a presence in for some time,” Nelson Knight, the company’s president of real estate and investments, said in a statement.
“With a wide variety of demand generators, including government, corporate, conventions, sporting events and concerts as well as both domestic and inbound international leisure, we are confident Washington, D.C. is well positioned for continued growth,” Knight added.
As of year-end 2023, RevPAR for the Washington, D.C., central business district submarket grew approximately 21% year over year, Apple Hospitality said, citing STR data.
Business and group travel demand have been particularly strong in the city, which was among 20 U.S. markets to see 100% recovery in group business in the fourth quarter of 2023, according to Knowland and Amadeus’ Hospitality Group and Business Performance Index. Other markets to see recovered group business include Dallas, New York City and Miami.
The AC Hotel Washington DC Convention Center will appeal to group and business travel demand because of its proximity to the Walter E. Washington Convention Center, Apple Hospitality said. The hotel is also near local attractions like Capital One Arena, the U.S. Capitol Complex, museums and galleries.
With the AC Hotel, Apple Hospitality grows its portfolio to 224 hotels with 29,886 guest rooms. The deal comes on the heels of another recent convention hotel investment for the trust, its $75 million acquisition of the SpringHill Suites by Marriott Las Vegas Convention Center in January.
Apple Hospitality isn’t the only hotel player betting on convention center properties. Earlier this month, The Westin Atlanta Gwinnett, the city’s latest convention hotel, opened its doors. And the Signia by Hilton brand is also expanding with new convention hotels in Atlanta and downtown Indianapolis.
