Apple Hospitality Real Estate and Investments has purchased a Homewood Suites by Hilton hotel in Florida.
Located on Palm River Road in Tampa, the 126-room hotel was acquired for $18.8 million, with the per room purchase price of around $149,000.
The acquisition price reflects a 12 per cent capitalisation rate on the property’s earnings in the financial year to April 2025, and is expected to yield return on investment in the high single-digit range after planned renovations.
Why it matters
Apple Hospitality’s acquisition signals a targeted expansion into the Tampa East submarket which has seen a 15 per cent year-over-year increase in revpar and has emerged as business travel hub, attracting investors seeking opportunities.
What they said
Apple Hospitality REIT president Nelson Knight said: “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. We anticipate that additional upside from operational synergies and improved market positioning following our planned renovation will further enhance returns on our investment.”