As part of the agreement, Seattle-based DHC will become aStrategic Alliance Member (SAM) with Barcelona REIT One (BR-1), aclosed-end fund that will operate as a private REIT. As a SAM, DHCwill co-invest with Barcelona and other investors to acquire hotelsoperating under leading, premium brands in the mid-market throughupper upscale segments. Target acquisitions will be located inprimary and secondary US and Canadian markets, according to RichardHarkin, president of Barcelona Hotel Group.

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DHC will be responsible for sourcing acquisition opportunitiesand will operate as a third-party manager for all properties thatit sources for the REIT. The hotels will be owned by BR-1, which isthe first of several planned closed-end funds.

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Harkin tells GlobeSt.com that BR-1 already has letters of intentout on acquisitions totaling $200 million to $250 million. Thedeals are expected to close in mid to late summer. "Most of theseproperties are purchase/leasebacks with the ownership company andperform at a current level so as to fully service the leaserequirements," he notes.

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Acquisition candidates will be properties that can benefit fromDow's turn-around and repositioning expertise. "We believe that thenext several years will create exceptional opportunities to acquirehotels, reposition them and take advantage of an economic upswing,"Harkin says.

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Also as part of the agreement, Murray Dow, president of DHC, hasbeen named to the Board of Directors of Barcelona Hotel Group,which was formed in 2009 by a group of former hotel industryexecutives in the finance and corporate arenas.

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