Apple Hospitality REIT Inc (NYSE:APLE) reported that its Board of Directors announced a regular monthly cash payout of $0.10 per common share for October 2015. This cash payout is payable on October 15 to shareholders of record date September 30, 2015. Based on the APLE closing price of $19.77 per share on September 17, the yearly cash payout of $1.20 per common share highlights a yearly yield of 6.1%.
Apple Hospitality comes in the group of publicly traded REITs. The company owns portfolios of upscale service hotels in the U.S. and comprises 177 hotels, with nearly 22,750 guestrooms, diversified across the Marriott® and Hilton® families of brands located in high-end suburban, developing and urban markets across 32 U.S. states.
The deal and market
In unrelated news, Apple Hospitality reported that it has closed acquisition of a Courtyard® by Marriott® in a deal valued at $56 million, or nearly $229,000 per key. Nelson Knight, Executive VP and Chief Investment Officer, said that they are delighted to add the Courtyard San Diego Central to company’s impressive portfolio of upscale hotels and enhance their presence in the San Diego market. The economy in San Diego is diversified across various corporate and leisure demand generators and they believe the recently renovated hotel is positioned for strong future growth.
Apart from leisure activities, the market of San Diego offers numerous demand generators and boasts an economy marked by a robust military concentration, life science research and healthcare firms and technology industries.
The asset
Apple Hospitality REIT Inc (NYSE:APLE) reported that the Courtyard® based in San Diego, is convenient to San Diego State University, Qualcomm Stadium, the University of California San Diego, Marine Corps Air Station Miramar, the San Diego Zoo, SeaWorld San Diego, downtown San Diego, beaches and the Gaslamp Quarter. Hotel industry basics have continued to improve in the San Diego market and as per the data released by STR, RevPAR improved by 10.7% for the last two quarters of 2015 over the same period of 2014.
