American Realty Capital Hospitality Trust Declares $21.48 NAV Per Share
The independent directors of American Realty Capital Hospitality Trust Inc., a publicly registered non-traded real estate investment trust sponsored by AR Global, unanimously approved an estimated net asset value of $21.48 per share. This is the first time that the board has determined a net asset value for its shares.
ARC Hospitality shares were originally sold for $25.00 each. Including DRIP shares and volume discounts, the average price paid for shares of common stock is $24.86 per share. Duff & Phelps, an independent third-party real estate advisory firm, was engaged by the REIT’s advisor to perform the appraisals.
The net asset value was based on an estimated fair value of the company’s assets, minus its liabilities, and divided by its shares of common stock outstanding.
ARC Hospitality Trust focuses on acquiring branded hotel properties located in North America. The company went effective in January 2014, and raised $896.7 million in investor equity prior to suspending its offering following a series of ARC-related scandals. As of March 31, 2016, the company’s portfolio consisted of 142 hotels with a total of 17,351 guestrooms located in 32 states.
