Apple Hospitality REIT has acquired the 260-room Motto by Hilton Nashville Downtown in Tennessee for approximately $98.2 million, or $378,000 per key, according to a Monday press release.
The hotel, which broke ground last year and opened this week, is within walking distance of the Country Music Hall of Fame and Museum, Bridgestone Arena, Ryman Auditorium and Music City Center, as well as popular Nashville attractions along Broadway and Riverfront Park.
The property features Motto’s signature Confirmed Connecting Room capabilities, which allow guests the option to link up to six rooms at once.
RevPAR for the Nashville central business district and the downtown submarket was approximately $211, or about 110% above industry RevPAR, as reported by CoStar subsidiary STR in the release. RevPAR for the region was approximately 79% above Apple Hospitality’s overall RevPAR for the same period.
“We are pleased to expand our portfolio with the acquisition of the newly constructed, innovative Motto by Hilton Nashville Downtown and increase our exposure to the dynamic and vibrant Nashville market,” Nelson Knight, president of real estate and investments for Apple Hospitality, said in the release.
Knight added that the overarching demand trends in Nashville remained strong, “with resilient leisure demand supported by a wealth of entertainment and sporting venues and strengthening business demand bolstered by the continued movement of both large and small corporates into Nashville’s business-friendly environment.”
The acquisition represents a new, complementary brand for Apple Hospitality’s existing rooms-focused portfolio, Knight said. He also noted that the company is confident the property’s appeal “will further enhance its ideal location just a few blocks off Broadway and our ability to drive strong operating performance over the long term.”
Including the Motto Nashville Downtown, Apple Hospitality’s hotel portfolio includes 217 hotels, comprising 29,580 keys, located across 84 markets in 37 states and the District of Columbia, per the release. Of those properties, 96 are Marriott-branded hotels, 115 are Hilton-branded, five are Hyatt-branded and one is an independent hotel.
