NEW YORK CITY—Confirming last month’s report on GlobeSt.com, American Realty Capital Hospitality Trust on Thursday said it had closed on its acquisition of interests in six East Coast hotels for a total of $106.5 million. GlobeSt.com had reported in February that a regulatory filing showed the seller to be Barcelo Crestline, based in Fairfax, VA, and a spokesman for ARC Hospitality confirmed that the REIT had acquired Crestline Hotels and Resorts from Barcelo as well.
The purchase marks ARC Hospitality’s first acquisition “and is representative of the durable income assets we intend to purchase,” says William Kahane, the company’s CEO and president. “The portfolio includes branded hotels franchised by Hilton Worldwide, Marriott International and Starwood Hotels & Resorts located in strong markets with embedded market demand generators. As the US economy continues to improve, we fully expect the hospitality sector to benefit from GDP growth.”
The deal announced Thursday involves the fee simple interests in the Courtyard Inner Harbor Hotel in Baltimore; the Courtyard Providence Downtown Hotel in Providence, RI; and the Homewood Suites in Stratford, CT; as well as a leasehold interest in the Georgia Tech Hotel & Conference Center in midtown Atlanta, for an aggregate purchase price of $101.5 million. ARC Hospitality has also acquired joint venture interests in the Hilton Garden Inn in Blacksburg, VA; and the Westin Virginia Beach Town Center in Virginia Beach, VA, for an aggregate purchase price of $5 million.
The REIT notes that all six properties are located near “demand generators” such as corporate headquarters, colleges or universities, state capitals or government agencies, hospitals, tourist attractions, airports, retail centers or convention centers. They’ll be managed by American Realty Capital Hospitality Properties LLC and Crestline Hotels & Resorts LLC, ARC Hospitality’s property manager and sub-property manager.