Apple Hospitality Buys Dual-Branded Hotel for $65M
- Aug 17, 2020
Apple Hospitality has acquired a turnkey, dual-branded hotel on Arizona State University’s campus in Tempe, Ariz. Mortenson Construction developed the 105-key Hyatt House and the 154-key Hyatt Place and sold the properties for $64.6 million.
Located at 601 E. 6th St., the recently built Hyatt hotels are part of the same building. George Forristall, director of real estate development at Mortenson, told Commercial Property Executive that the company developed and designed the hotels, breaking ground in February 2019. Forristall also told CPE that the shared services property also has a lobby, dining space and elevator bank that can be used by either hotel brand. The building also features meeting facilities, a pool, an on-site restaurant and a fitness center.
Nelson Knight, Apple’s president of real estate and investments, said in prepared remarks that the company contracted the development of the hotels in 2018. Knight added in his statement that the dual-branded property is well-positioned to attract business and leisure travelers thanks to its location near the university’s many athletic facilities and future sports arena. The building is situated across the Desert Financial Arena and within walking distance to the Sun Devil Stadium. The property is also near the Phoenix Sky Harbor International Airport and a Valley Metro Rail stop.
The two companies previously worked together in May 2018, when Apple acquired a 210-key Hampton Inn & Suites by Hilton hotel in Phoenix that was also developed by Mortenson. The purchase price was $44 million.
Campus corridor project
As for their latest collaboration, the Hyatt hotels are part of the first phase of a mixed-use development integrated into the Arizona State University’s Tempe campus. The Novus Innovation Corridor will include more than 11 million square feet of office, residential, retail and restaurant space across 355 acres.
The project is being undertaken as a public-private partnership between the university and Catellus Development Corp. and was intended to generate long-term revenue for renovations to the collegiate athletic facilities. The corridor currently has a six-story Class A office building and a garage with 1,801 parking spaces, while a 318-unit community is being built alongside an expansion to the Athletics Village.