ARC Hospitality to Acquire Hotel Portfolio from Wheelock Street Capital
Public, non-traded real estate investment trust (REIT) American Realty Capital Hospitality Trust (ARC Hospitality) recently agreed to acquire a portfolio of five hotels from Wheelock Street Capital for $92.5 million. Collectively, the hotels total 565 rooms in three states; Texas, Tennessee, and Ohio.
Branded by Marriott International, the select-service hotels include the Courtyard Austin Round Rock in Austin, Texas, the Courtyard College Station in College Station, Texas, the SpringHill Suites Cincinnati North / Forest Park in Cincinnati, Ohio and the Courtyard Nashville at Opryland and the Fairfield Inn & Suites Nashville at Opryland, both in Nashville, Tennessee.
“We are delighted to acquire this outstanding portfolio of premium Marriott-branded hotels, which we believe are located in some of the nation’s top-performing lodging markets and are proximate to a diverse base of powerful demand generators,” commented Jonathan P. Mehlman, Chief Executive Officer of ARC Hospitality.
Expected to close in Q4 2015, the acquisition is subject to customary closing conditions and franchisor approvals.
“We believe the Wheelock Portfolio, if acquired, will further improve our position of leadership in the select-service lodging REIT sector as well as our platform’s ability to drive shareholder value,” added Mehlman.
Edward T. Hoganson, Chief Financial Officer of ARC Hospitality, said, “We look forward to continuing to cultivate a strategic relationship with the highly talented Wheelock team, as well as working cohesively with Marriott International, through the closing of this transaction.”
Real estate private equity firm Wheelock Street Capital, LLC sponsors the Wheelock Real Estate Fund, L.P., which, through affiliates, was the seller of the portfolio.
Upon closing of this acquisition, the ARC Hospitality lodging portfolio will include 127 hotels totaling 15,487 rooms across 32 states.