Apple Hospitality REIT completed the purchase of the 260‑room Motto by Hilton Nashville Downtown for $98.2 million, or $378,000 per key. The transaction brings the REIT’s portfolio to 217 hotels with 29,580 guest rooms across 37 states and the District of Columbia, adding a newly constructed, upscale property just blocks from Broadway, the Country Music Hall of Fame, and Bridgestone Arena in Nashville, Tennessee.
The acquisition was secured through a fixed‑price, take‑out contract signed before the hotel’s construction, allowing Apple Hospitality to lock in an attractive per‑key price. Nashville’s downtown submarket has demonstrated strong performance, with a trailing‑12‑month RevPAR of approximately $211, well above the REIT’s portfolio average and the industry benchmark. The city’s robust leisure and business demand, driven by its entertainment venues and corporate growth, makes it a strategic fit for the REIT’s growth strategy.
Apple Hospitality reported a year‑over‑year RevPAR loss and a reduction in its 2025 guidance in the third quarter, reflecting broader economic uncertainty and a government shutdown. The Nashville acquisition signals management’s confidence in high‑growth markets despite these headwinds. President Nelson Knight noted that the deal “expands our portfolio with a newly constructed, innovative Motto by Hilton and increases our exposure to the dynamic Nashville market.”
The purchase adds a lifestyle brand to the REIT’s mix, diversifying its brand portfolio and positioning it in an entertainment‑rich area that has historically delivered strong RevPAR. While some analysts have expressed caution about the potential for lower-than-historical returns on this particular development, the acquisition remains consistent with the REIT’s disciplined M&A approach and its focus on rooms‑centric profitability.
Overall, the deal expands Apple Hospitality’s geographic footprint, strengthens its presence in a high‑performing market, and supports its long‑term strategy of acquiring high‑quality, brand‑aligned assets while maintaining disciplined cost control in a challenging economic environment.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.