Announced in June of this year, non-traded REIT, American Realty Capital Hospitality Trust (ARC Hospitality), agreed to acquire Equity Inns Lodging Portfolio.
Recently, the two parties have agreed to remove a number of contingencies set forth in the original purchase and sale agreement. Both parties believe the alterations will bolster the certainty of a successful transaction.
The Equity Inns lodging portfolio is being sold by subsidiaries of W2007 Grace I, LLC and WNT Holdings, LLC and will add 13,744 rooms in 116 hotels across 31 U.S. states to ARC Hospitality’s portfolio. The hotels are franchised by a number leading global hotel brands including Hilton Hotels & Resorts, Marriott International, Hyatt Hotels, and InterContinental Hotels Group. It will also include several well-known hotel flags, such as Hampton Inn, Hilton Garden Inn, Homewood Suites, Embassy Suites, Courtyard, Residence Inn, Hyatt Place, and Holiday Inn.
According to the amended agreement, ARC Hospitality will acquire the portfolio for $1.808 billion, with a scheduled closing of February 27, 2015. The addition of the Equity Inns portfolio will bring ARC Hospitality’s lodging portfolio to 122 hotels with a total of 14,925 rooms.
Originally, the announced deal called for ARC Hospitality to acquire 126 properties with 14,934 rooms across 35 states for $1.925 billion.