A New York company sold an extended-stay hotel near Seattle in the latest sign that investors remain attracted to the region, even as many buyers and sellers across the nation stay on the sidelines waiting out the turbulence in capital markets.
Lodging owner-operator MCR Corp. sold the 146-room Residence Inn by Marriott Seattle South/Renton at 1200 Lake Washington Blvd. N to Apple Hospitality REIT, based in Richmond, Virginia, the buyer said in a statement.
The property that opened in 2019 sold for $55.5 million, or $380,000 per key, well above the $281,000-per-room average over the past 12 months in Seattle’s Bellevue/East hotel market, CoStar data shows.
The deal ranks as the second-largest sale of a single hotel property by total price this year, after Pebblebrook Hotel Trust's $63.3 million sale in May of the 189-room Kimpton Hotel Monaco in downtown Seattle to Toronto's InnVest Hotels.
Greater Seattle hotel investment volume this year is forecast to be well below 2022’s total of roughly $600 million, despite strong year-over-year gains in occupancy as corporate and leisure travel to the area, according to a CoStar analytics report.
Some conferences and conventions have returned to the area this year, and summer mega events such as the MLB All-Star Game and Taylor Swift's concert drew many visitors from outside the area.
Apple Hospitality is attracted to Renton’s strong growth in manufacturing, technology, life science and other industries, and its easy access to downtown Seattle and downtown Bellevue, president of real estate and investments Nelson Knight said in the statement. The real estate investment trust noted that the hotel is less than a mile from Boeing’s 737 massive assembly facility, and PACCAR’s Kenworth truck plant.
Revenue per available room for Bellevue/East improved by more than 16% for the trailing 12 months that ended Aug. 31 over the prior period, according to Apple Hospitality, citing data from hospitality analytics firm STR, a unit of CoStar Group.