ARC Hospitality Lands Brookfield Commitment

ARC Hospitality’s portfolio includes this Hyatt House in Atlanta.

NEW YORK CITY—American Realty Capital Hospitality Trust Inc. said Friday it would receive a $400-million convertible preferred investment commitment from Brookfield Asset Management. As part of the agreement between ARC Hospitality and Brookfield, the hotel REIT will become self-managed, its name will change to Hospitality Investors Trust and its board will be enlarged from four members to seven, including two appointed by Brookfield.

Jonathan Mehlman, president and CEO of ARC Hospitality, says the scale of the investment “speaks to Brookfield’s vision for the opportunities for both the Company as well as the select-service lodging REIT sector in general. We believe that this investment positions the Company’s platform favorably for future success and growth.”