Apple Hospitality CEO: More Sellers With Hotels Are Staying at the Negotiating Table
REIT Plans To Be a Net Acquirer in 2022
Apple Hospitality REIT has been patient with the hotel transactions market, and that patience could soon pay off.
Justin Knight, president and CEO of the Richmond, Virginia-based hotel real estate investment trust, said more sellers — who in the past may have wanted to sell larger portfolios of hotels — are now more open to discussions on transacting single-asset deals.
"As we were initially underwriting, the portfolios often contained assets that we thought would be less additive to our portfolio, and that impacted the value for us and our pricing and competitiveness around the portfolio," Knight said on the company's second-quarter earnings call. "As the portfolios are coming back to market, sellers are increasingly willing to consider disposition of a subset of the larger portfolio, which puts us in a position to more effectively align the makeup of the portfolio that we're underwriting with our existing strategy and the portfolio we currently have."