Non-traded REIT hopeful, American Realty Capital Hospitality Trust (ARC Hospitality), announced that it has closed on its first six acquisitions. The company recently acquired interest in six hotels around the U.S.
For an aggregate purchase price of $105.5 million, the company acquired the fee simple interests in the Courtyard® Inner Harbor Hotel in Baltimore, Maryland, the Courtyard® Providence Downtown Hotel in Providence, Rhode Island, and the Homewood Suites® in Stratford, Connecticut, as well as a leasehold interest in the Georgia Tech Hotel & Conference Center in midtown Atlanta, Georgia. The company funded the acquisitions through a Fee and Leasehold Assets Note and a Deutsche Bank Loan.
Rounding out the acquisitions, ARC Hospitality acquired joint venture interests in The Hilton Garden Inn® in Blacksburg, Virginia, and the Westin Virginia Beach Town Center in Virginia Beach, Virginia, for an aggregate purchase price of $5.0 million, exclusive of closing costs.
The hotels were selected for their location as well as being globally branded. In total, the properties have 1,181 rooms and 38,960 square feet of meeting space.
Jonathan P. Mehlman, Chief Investment Officer of ARC Hospitality, commented, “Each of these hotels is the leader in its respective market from an average daily rate, occupancy and Revenue Per Available Room perspective. We are very excited to have procured this high quality hotel portfolio in an off-market transaction and at a price which is at a discount to current replacement cost.”
ARC Hospitality intends to qualify as non-traded RIET for the taxable year ending December 31, 2014. It seeks to create a diversified portfolio of select-service and full-service hotels throughout North America.