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.

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.

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.