REIT Closes On 119-Room Hotel

BATON ROUGE, LA-Apple REIT Nine continued to add to its collection of hospitality properties across the U.S. with the recent closing of the 119-room SpringHill Suites by Marriott in Howell Place. The Richmond, VA-based company paid $15.1 million to seller Viking Fund Baton Rouge for the brand-new asset, which opened less than a week ago.

A spokeswoman with the REIT declined GlobeSt.com’s request for interview, noting that Apple REIT Nine is still in the offering phase. A March 2009 filing with the Securities and Exchange Commission noted that the property at 7980 Howell Place Blvd. is one of 19 hotels nationwide that the REIT has under contract or has purchased.

The filing went on to state that Apple REIT Nine planned to invest a total of $329 million in hospitality assets during 2009. GlobeSt.com previously reported that the company paid $47.2 million to acquire three hospitality assets in the Austin, TX area.

Apple REIT Nine is looking for investments with strong brand recognition and potential for cash flow growth in underdeveloped markets. The REIT has been in existence for about a year and a half, and invests in Marriott- and Hilton-branded hotels.

Howell Place is a 200-acre tract of land being developed by Richard Preis for mixed-use purposes. The project already has a 131-room Hilton Garden Inn, Baton Rouge Surgical Hospital, a state public safety complex and communications center.