Located in the MetroWest region of Metropolitan Boston, Marlborough has nine major hotels and more than 1,700 units despite its modest size of just over 35,000 residents. Proximity to major roadways including Interstate 495 and Route 290 have enabled the city to attract a number of corporate office tenants, which in turn has led to substantial hotel construction. Among the flags presently flying in the city are Courtyard by Marriott, Embassy Suites, Hampton Inn, Holiday Inn and Homestead Studio Suites.

Calls to Leatherwood and to Apple Eight officials at the firm's headquarters in Richmond, VA were not returned by press deadline. CBRE Hotels is said to be representing Leatherwood on the sale, but broker David McElroy in that group's Boston office also did not respond to inquiries.

Nonetheless, sources insist the hotel is being divested by Leatherwood to one of the country's most active hotel investment firms. Apple Eight is the latest in a series of hotel-centric REITs created by Apple Hospitality Inc. The firm earlier this year harvested several existing properties in two major sales, including an $877-million portfolio deal with ING Clarion. First reported by GlobeSt.com in January, that sale of Apple Hospitality Two involved 63 extended stay hotels, including a Residence Inn north of Boston in Tewksbury that ING has opted to flip. Another hefty portfolio was purchased by Inland American Real Estate Trust.

Even in trading those assets, Apple has wasted little time scooping up new properties for Apple Eight, which is also targeting extended stay and select service hotels. The vehicle is purchasing more than 1,000 rooms from Newport Hospitality Group for $128 million, including two Hilton Garden Inns in Warwick, RI.

Leatherwood has been a prolific hotel developer in New England for the past decade, with several properties constructed in Massachusetts, including three in Peabody, MA, and another in Downtown Boston that was later sold to Kimpton Hotels and reflagged as an Onyx Hotel. It is unclear when the Marlborough deal will close, but one source predicts it will be finished by year's end.