NEW YORK—American Realty Capital Hospitality Trust, Inc. (ARC Hospitality) has completed its previously announced acquisition of two hotels for a purchase price of $48.6 million from affiliates of Noble Investment Group, LLC. This transaction represents the first two of 13 hotels that ARC Hospitality will be acquiring from Noble for a total purchase price of $300 million.
The two hotels are the 127-room Hyatt Place Chicago/Schaumburg in Illinois and the 204-room Hilton Garden Inn Monterey in California. These purchases increase ARC Hospitality’s current lodging portfolio to 134 hotels totaling 16,345 rooms across 32 states.
“We are pleased to acquire these high-quality, premium-branded hotels with strong cash flows from Noble,” commented Jonathan P. Mehlman, CEO of ARC Hospitality. “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.”
ARC Hospitality currently has an additional 21 hotels under contract with two other unrelated sellers for a total purchase price of $289.8 million. The company intends to complete the acquisition of the remaining 32 hotels during the next seven months, acquiring a total of 44 hotels from the three sellers.
ARC Hospitality financed the acquisition of these hotels in part by drawing on its $450 million term loan facility, which was co-arranged by Deutsche Bank AG New York Branch, Deutsche Bank Securities, Inc. and BMO Capital Markets.