Tuesday June 3rd, 2014 - 9:23AM
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.