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NEW YORK CITY-Investcorp Real Estate has paid $450 million to acquire a 96% stake in a series of assets in the Procaccianti Group’s portfolio. The seller will keep a small interest in the properties and will continue to manage them.

Procaccianti’s portfolio consists of nine full-service hotels distributed between Illinois, Texas, Oklahoma, Virginia and Florida. The hotels are branded as either Marriott, InterContinental, Hilton or Starwood. Investcorp has purchased eight of the properties, with the final asset expected to close in July. This portfolio will give Investcorp 2,828 keys and more than 250,000 sf of meeting space.

Of the acquired portfolio, three hotels are located in Illinois: the Marriott Schaumburg, the Crowne Plaza and the Holiday Inn Express. Two hotels are in Florida: the Holiday Inn Select and the Marriott Palm Beach. Two are in Oklahoma: the Doubletree and the Marriott Waterford. The Marriott Waterside is in Virginia and the Westin DFW is in Texas.

In the last several years the hotels have been renovated, a process Investcorp now plans to continue, according to company executives.”The properties within this portfolio are well-positioned within their markets in terms of location, quality and hotel franchise,” says Christopher Sameth, an Investcorp principal. “We are looking forward to working closely with our partners at the Procaccianti Group, a best-in-class hotel operator, to create even greater value in this portfolio and we look ahead to future business partnerships with them.”

The acquisition of the majority of these properties is part of Investcorp’s current scheme, in which the company is looking to acquire US hotel assets. In the last eight months the company has acquired about $500 million worth of hotels. “We are looking to make additional hotel investments this year, including portfolio recaps and purchases, as well as single-asset situations,” Sameth says.

Today in addition to the Procaccianti portfolio, Investcorp acquired the Residence Inn by Marriott in Milwaukee. The 131-room hotel is located in the heart of Downtown and was opened in 2001. It will be operated by Sage Hospitality Resources, the company which has managed the facility since it opened.

The Procaccianti Group owns 50 hotels in the US, which total almost 13,000 rooms in 17 states.

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