Justin Knight, president and CEO of Apple Hospitality REIT (NYSE: APLE), joined REIT.com for a CEO Spotlight video interview at REITWeek 2016: NAREIT’s Investor Forum at the Waldorf Astoria New York.
Apple Hospitality’s hotels operate exclusively under the Hilton and Marriot brands, with locations in urban, high-end suburban and developing markets.
Knight discussed the recently-announced deal to acquire public non-listed REIT Apple REIT Ten, Inc. for $1.3 billion. He said the transaction offers a highly complementary portfolio of Hilton and Marriott select-service hotels, and increases the company’s presence in a number of key markets.
Meanwhile, Knight said the company’s broad geographic distribution has sheltered it from the impact of new supply, which has been seen in a number of gateway and urban markets.
Knight also said Apple Hospitality is continually exploring opportunities with other hotel brands, but to date the company is satisfied with its relationship with Hilton and Marriott.
The two brands have a broad presence in the space Apple Hospitality has chosen, strong customer loyalty programs, and “incredible” brand recognition, Knight said.
“Our investment in those hotels enables us to produce the strongest returns for our investors,” he added.