American Realty Capital Acquires Equity Inns Portfolio for $1.9 Billion
Tuesday June 3rd, 2014 - 9:23AM Q
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NEW YORK—In a deal that will help form one of the largest lodging REITS in the U.S., American Realty Capital Hospitality Trust Inc. (ARC Hospitality) has inked a deal to acquire the hotel portfolio of Equity Inns from affiliates of the Whitehall Real Estate Funds, real estate private equity funds sponsored by Goldman Sachs.
The lodging portfolio is expected to net some $1.925 billion. The deal, which is expected to close in the fourth quarter, includes 126 hotels in 35 states and marks ARC Hospitality’s biggest portfolio acquisition to date. The acquisition of Equity Inns will give ARC Hospitality 132 hotels in its portfolio.
"The acquisition of the Equity Inns lodging portfolio is a transformational event for ARC Hospitality. We believe this acquisition catapults ARC Hospitality into a position of leadership within the hospitality industry, becoming a top-tier player in the select-service lodging REIT sector and providing us a strong foundation for further expansion," stated Nicholas S. Schorsch, chairman of the board of directors of ARC Hospitality.
Tags: Equity Inns • ARC Hospitality • Hospitality • Owners/Operators •
When you hear all the lodging industry projections for the months and years to come, much of the robust growth is forecast to be the result of the expected influx of travelers from China. In what could only be seen as good news for the industry, that expectation moved a little closer to reality when President Obama signed a visa waiver extension for Chinese travelers earlier this month.