Photo / William Hall
Apple Hospitality REIT purchased the AC Hotel in Portland for $66.8 million.
August 24, 2021
AC Hotel in Portland sold to Virginia real estate investment trust for $67M
Photo / William Hall
The 178-room AC Hotel in Portland has been sold to a real estate investment trust in Virginia.
By William Hall
A 178-room hotel on Portland’s eastern waterfront, the AC Hotel by Marriott, has been purchased by a Virginia real estate investment trust for $66.8 million.
In a news release late Monday, Apple Hospitality REIT Inc. (NYSE: APLE) said it had acquired the hotel, an upscale, European-style property “with no unwanted extras,” according to its website.
The hotel was built in 2018 at 158 Fore St., facing another hotel under the Marriott International brand, the 179-room Residence Inn. Apple purchased the Residence Inn four years ago for $55.8 million.
The trust on Monday said it plans to acquire a third local hotel, the Marriott-flagged 157-room Aloft Portland, this fall. The Aloft is expected to open in September on the other end of the city’s waterfront, at 379 Commercial St.
Apple, headquartered in Richmond, Va., did not immediately respond to an inquiry from Mainebiz about the recent and future transactions. But Apple’s president of real estate and investments, Nelson Knight, said in the release, “The three hotels will be operated by the same management company which, combined with our exceptional asset management, will create additional operational synergies.”
With the AC Hotel by Marriott Portland, Apple’s portfolio consists of 213 hotels offering 27,800 guest rooms located in 84 markets throughout 35 states.
The Residence Inn and AC Hotel were both previously owned by Norwich Partners, a Florida-based commercial real estate developer and investor. The Aloft is currently owned by Norwich.
The opening of the Aloft will be the latest in a string of hotel launches in Portland, which currently is one of the most expensive hotel markets in New England. With the opening, over 3,400 hotel rooms will be available in the city itself.
Norwich CEO David Leatherwood told Mainebiz in April that “Portland is going to have a booming summer.” He described the Aloft as a “hipper, younger version of the AC.” While both are Marriott-owned brands, Aloft targets young families and millennials as a “very high-tech forward.”
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Anonymous
August 26, 2021
It is interesting to me how there are now 3,400 hotel rooms in Portland per this article yet there is such rampant resistance to people renting their homes for short-term stays. I guess this further illustrates the power of lobbying and who truly controls government.
Anonymous
August 25, 2021
The question you failed to ask is "Why?" Why are they so interested in multiple venues in Portland? Is this a hedge against the City's excess regulation? Are they seeking leverage in future negotiations? Or is it all about profits? Is it the lack of other land to build on? Next time, Mainebiz, ask why. EDITOR'S NOTE: Thanks for the feedback - we did. Unfortunately, answers weren't immediately forthcoming.
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