HOUSTON—In a marrying of Real Capital Solutions' macro oil prediction and financial resources with Prism Hotels and Resorts' expertise in managing hotel operations, an opportunistic fund was created. Dallas-based Prism has partnered with Louisville, CO-based Real Capital Solutions in a $200 million investment fund initiative where Real Capital Solutions is poised to purchase hotels located in the Permian Basin in Texas.
“We believe we've hit the bottom in terms of oil pricing and associated impact on hotel demand,” Kevin Gallagher, senior vice president of business development for Prism Hotels and Resorts, tells GlobeSt.com. “The demand will likely stay static in the near term before it starts showing meaningful recovery.”
In addition to these properties in oil patch markets, the fund is also pursuing upscale full-service hotels in major oil and gas hubs nationally including Houston, Oklahoma City, Tulsa and Lafayette, LA.
“Prism's team of highly knowledgeable hotel experts—and their deep understanding of the Texas market—made strategic sense to partner with as we launch this initiative,” said Marcel Arsenault, chairman and CEO of Real Capital Solutions. “Their hotel expertise and relationships nationally and in Texas, coupled with our innovative investment strategy, is sure to make for a meaningful association as we pursue this critical region ripe with possibilities.”
Arsenault, who initially made his wealth during the savings and loan crisis, believes the time for investment is right due to the current state of the hotel industry and the ability to secure opportunistic properties. Experts including Arsenault believe the price of oil will recover within the next two years to $60 to 65 per barrel, and as a result, he believes hotel fundamentals will improve when drilling recovers.
“Working hand-in-hand with Marcel and his outstanding team at Real Capital Solutions will create an unmatched chance for Prism to provide RCS with hotel industry and geographic market intelligence,” Prism Hotels and Resorts' president and CEO Steve Van said. “The Permian Basin is the richest area of oil and gas in the United States with a vast established infrastructure. Marcel has a way of fundamentally understanding timing and market conditions, and as we watch this area continue to evolve for the better, now is the perfect time for action.”
Arsenault is one of the largest and most active private owners of commercial real estate in the United States. In 2005, he authored an internal paper titled “Housing Causes Hard Landing,” predicting the housing crash and subsequent problems in the financial industry. More recently, he predicted the downturn in oil prices, but the collapse went much deeper than he projected.
HOUSTON—In a marrying of Real Capital Solutions' macro oil prediction and financial resources with Prism Hotels and Resorts' expertise in managing hotel operations, an opportunistic fund was created. Dallas-based Prism has partnered with Louisville, CO-based Real Capital Solutions in a $200 million investment fund initiative where Real Capital Solutions is poised to purchase hotels located in the Permian Basin in Texas.
“We believe we've hit the bottom in terms of oil pricing and associated impact on hotel demand,” Kevin Gallagher, senior vice president of business development for Prism Hotels and Resorts, tells GlobeSt.com. “The demand will likely stay static in the near term before it starts showing meaningful recovery.”
In addition to these properties in oil patch markets, the fund is also pursuing upscale full-service hotels in major oil and gas hubs nationally including Houston, Oklahoma City, Tulsa and Lafayette, LA.
“Prism's team of highly knowledgeable hotel experts—and their deep understanding of the Texas market—made strategic sense to partner with as we launch this initiative,” said Marcel Arsenault, chairman and CEO of Real Capital Solutions. “Their hotel expertise and relationships nationally and in Texas, coupled with our innovative investment strategy, is sure to make for a meaningful association as we pursue this critical region ripe with possibilities.”
Arsenault, who initially made his wealth during the savings and loan crisis, believes the time for investment is right due to the current state of the hotel industry and the ability to secure opportunistic properties. Experts including Arsenault believe the price of oil will recover within the next two years to $60 to 65 per barrel, and as a result, he believes hotel fundamentals will improve when drilling recovers.
“Working hand-in-hand with Marcel and his outstanding team at Real Capital Solutions will create an unmatched chance for Prism to provide RCS with hotel industry and geographic market intelligence,” Prism Hotels and Resorts' president and CEO Steve Van said. “The Permian Basin is the richest area of oil and gas in the United States with a vast established infrastructure. Marcel has a way of fundamentally understanding timing and market conditions, and as we watch this area continue to evolve for the better, now is the perfect time for action.”
Arsenault is one of the largest and most active private owners of commercial real estate in the United States. In 2005, he authored an internal paper titled “Housing Causes Hard Landing,” predicting the housing crash and subsequent problems in the financial industry. More recently, he predicted the downturn in oil prices, but the collapse went much deeper than he projected.
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