American Realty Capital Hospitality Trust has increased its portfolio to 134 hotels totaling 16,345 rooms across 32 states, by acquiring two hotels from affiliates of the Noble Investment Group for $48.6 million.
PR News Wire reported that the acquisition of the 127-room Hyatt Place Chicago/Schaumburg, Illinois, and the 204-room Hilton Garden Inn Monterey, California represents two of 13 hotels that the American Realty Capital Hospitality Trust announced to acquire from Noble for a total purchase price of $300 million.
"We are pleased to acquire these high-quality, premium-branded hotels with strong cash flows from Noble," Jonathan P. Mehlman, Chief Executive Officer of ARC Hospitality, commented on the press release of the company. "These hotels, which have each delivered outsized RevPAR growth year-to-date, are leaders in their respective markets and close to powerful business and leisure demand generators that should continue to drive future growth. We look forward to continuing to work with the Noble management team on closing the additional hotel properties we have under contract."
The press release from the American Realty Capital Hospitality Trust also mentioned that the company currently has 21 more hotels under contract with two other unrelated sellers, for a total purchase price of $289.8 million. The acquisition of the remaining 32 hotels are intended to be completed by the company in the next seven months.
American Realty Capital Hospitality Trust draws on its $450 million term loan facility that was co-arranged by Deutsche Bank AG New York Branch, Deutsche Bank Securities, Inc. and BMO Capital Markets, to finance the acquisition of the hotels in part.
American Realty Capital Hospitality is a publicly registered, non-traded real estate investment trust ("REIT"). The American Realty Capital investment strategy focuses on the acquisition of stable, institutional quality, and strategically located lodging properties in North America, branded by premium national hotel brands.
