Justin Knight, president and CEO of Apple Hospitality REIT (NYSE: APLE), joined REIT.com for a CEO Spotlight video interview at REITWorld 2016: NAREIT’s Annual Convention for All Things REIT at the JW Marriott Phoenix Desert Ridge.
In September, Apple Hospitality completed the acquisition of the public non-listed REIT Apple REIT Ten, Inc. Knight said some of the strategic benefits from the deal are starting to accrue to Apple Hospitality.
“It significantly increased our scale and geographic footprint, increased the size and strength of our balance sheet, and increased ownership of key Hilton and Marriott brands,” Knight said.
Apple Hospitality has been conducting business with Hilton and Marriott for more than 15 years, Knight noted. He said the REIT has “unparalleled representation” on the Hilton and Marriott brand advisory boards and is involved on a daily basis with improving and enhancing the brands’ value proposition.
Meanwhile, Knight stressed that geographic diversification to mitigate risk and volatility has always been a mainstay of the company’s strategy. Apple Hospitality currently owns assets in 33 states. Knight said the REIT is continually looking to adjust the mix of the portfolio in response to the emergence of regional or economic trends.