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ARC Hospitality Acquires Second Hotel Portfolio in a Week

American Realty Capital Hospitality Trust (ARC Hospitality), a public, non-traded real estate investment trust (REIT), announced today that it has agreed to acquire a portfolio of 26 hotels (the Summit Portfolio) for $351.4 million from publicly-traded REIT Summit Hotel Properties, Inc.

“The Summit Portfolio represents an ideal property fit for ARC Hospitality. We are pleased to add this portfolio of high-quality, stabilized lodging properties with strong brand affiliations to our expanding platform,” said Jonathan P. Mehlman, Chief Executive Officer of ARC Hospitality.

Consisting of 25 premium-branded select-service and extended-stay hotels plus one full-service hotel, the Summit Portfolio totals 2,793 rooms across 11 states. Marriott International, Hilton Hotels & Resorts, Hyatt Hotels, and InterContinental Hotels Group franchise the hotels.

Mehlman added, “We are excited to acquire a portfolio that we believe offers both an attractive yield and price per key, as well as scale, brand power, and consistent and growing cash flows that in our view have been unmatched among marketed portfolios this year.”

The acquisition took place in two separate purchase and sale agreements and is expected to close in three separate tranches with estimated sale dates of September 2015, October 2015, and January 2016.

Just last week, ARC Hospitality agreed to acquire a portfolio of five hotels from Wheelock Street Capital for $92.5 million.

Upon closing of the Wheelock and Summit portfolio transactions, ARC Hospitality’s lodging portfolio will consist of 153 hotels with 18,280 rooms across 33 states.