American Realty Capital Hospitality Trust Inc., a publicly registered non-traded real estate investment trust, purchased two hotels for $59 million from affiliates of Noble Investment Group LLC, a lodging and hospitality real estate private equity firm.
ARC Hospitality has now closed on the acquisitions of four of the 13 hotels that the company has under contract to purchase from Noble.
The two hotels include the 150-room Courtyard by Marriott Columbus Downtown, Ohio and the 149-room Hyatt House Atlanta Cobb Galleria, Georgia. These purchases increase ARC Hospitality’s current lodging portfolio to 136 hotels totaling 16,644 rooms across 32 states.
“By acquiring these assets, we now own 136 hotels in a geographically diversified portfolio,” commented Jonathan P. Mehlman, chief executive officer of ARC Hospitality.
Edward Hoganson, the chief financial officer of ARC Hospitality, added, “We are delighted to add the first Hyatt House to our property portfolio, and we welcome this Hyatt extended-stay brand into our collection.”
As previously announced, ARC Hospitality financed the acquisition of these hotels in part by drawing on its $450 million term loan facility, which was arranged by Deutsche Bank AG New York Branch and Deutsche Bank Securities, Inc.
The DI Wire reported on the first Noble hotel acquisitions in early November when the company purchased two hotels in Chicago and Monterrey, California for $48.6 million.
AR Capital, the REIT’s sponsor, said that it will stop offering and selling new investment products after December 31st, which includes American Realty Capital Hospitality Trust. Realty Capital Securities, the REIT’s dealer manager, also suspended the sales activities it performs for its initial public offering. Cetera and its broker-dealer network suspended sales, as well. It is unclear at this time how American Realty Capital Hospitality Trust will continue to finance the remaining Noble acquisitions.
ARC Hospitality is a publicly registered, non-traded real estate investment trust that focuses on acquiring stable, institutional quality and strategically located lodging properties in North America branded by premium national hotel brands.