NEW YORK—American Realty Capital Hospitality Trust, Inc. has closed on the acquisition of interests in six hotels on March 21, 2014, marking the trust’s first property acquisitions.
ARC Hospitality acquired the fee simple interests in the Courtyard Inner Harbor Hotel in Baltimore, the Courtyard Providence Downtown Hotel in Providence, RI, and the Homewood Suites in Stratford, CT, as well as a leasehold interest in the Georgia Tech Hotel & Conference Center in midtown Atlanta, for an aggregate purchase price of $101.5 million, exclusive of closing costs.
Additionally, ARC Hospitality has acquired joint venture interests in The Hilton Garden Inn in Blacksburg, VA, and the Westin Virginia Beach Town Center in Virginia Beach, VA, for an aggregate purchase price of $5.0 million, exclusive of closing costs.
The hotels contain 1,181 rooms and approximately 38,960 sq. ft. of meeting space. Each of the hotels is a globally branded select-service or full-service hotel, or, in the case of the Georgia Tech Hotel & Conference Center, a hotel and conference center affiliated and owned by the endowment of the university.
All of the hotels are located near “demand generators” such as corporate headquarters, colleges or universities, state capitals or government agencies, hospitals, tourist attractions, airports, retail centers or convention centers, according to ARC Hospitality. American Realty Capital Hospitality Properties, LLC and Crestline Hotels & Resorts, LLC, ARC Hospitality’s property manager and sub-property manager manage the six hotels.
William M. Kahane, CEO and president of ARC Hospitality, stated, “The purchase of these six assets marks our first acquisition and is representative of the durable income assets we intend to purchase. The portfolio includes branded hotels franchised by Hilton Worldwide, Marriott International and Starwood Hotels & Resorts located in strong markets with embedded market demand generators. As the U.S. economy continues to improve, we fully expect the hospitality sector to benefit from GDP growth.”