Hospitality real estate investment trust (REIT) Apple Hospitality REIT, Inc. (APLE) recently announced that it has acquired AC Hotel by Marriott in Portland, Maine. The company has paid a consideration of $66.8 million for the 178-room property.
Following the news, shares of the company remained unchanged at $14.48 in Monday’s extended trade.
The hotel, which opened its doors in July 2018, is located at 158 Fore Street in Portland, Maine. Notably, in June 2021, the hotel reported occupancy of 85%, the average daily rate of $256 and revenue per available room of $217 for the month.
The President of Real Estate and Investments of Apple Hospitality, Nelson Knight, said, “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.” (See Apple Hospitality stock chart on TipRanks)
Recently, Robert W. Baird analyst Michael Bellisario reiterated a Buy rating on the stock with a price target of $19. The analyst’s price target implies upside potential of 31.2% from current levels.
Consensus among analysts is a Hold based on 1 Buys and 3 Holds. The average Apple Hospitality price target of $17.50 implies upside potential of 20.9% from current levels.
Apple Hospitality scores a 9 out of 10 from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations. Shares have gained 48.2% over the past year.