Close

Cart

Total $0.00

Checkout

Purchase increases current lodging portfolio to 134 hotels totaling 16,345 rooms across 32 states 

NEW YORK, Nov. 4, 2015 -- American Realty Capital Hospitality Trust, Inc. ("ARC Hospitality" or the "Company") announced today that it has completed its previously announced acquisition of two hotels for a purchase price of $48.6 million from affiliates of Noble Investment Group, LLC ("Noble"), a leading lodging and hospitality real estate private equity firm. This transaction represents the first two of 13 hotels that the Company announced it will be acquiring from Noble for a total purchase price of $300 million.

The two hotels announced today are the 127-room Hyatt Place Chicago/Schaumburg, Illinois and the 204-room Hilton Garden Inn Monterey, California. These purchases increase ARC Hospitality's current lodging portfolio to 134 hotels totaling 16,345 rooms across 32 states.

"We are pleased to acquire these high-quality, premium-branded hotels with strong cash flows from Noble," commented Jonathan P. Mehlman, Chief Executive Officer of ARC Hospitality. "These hotels, which have each delivered outsized RevPAR growth year-to-date, are leaders in their respective markets and close to powerful business and leisure demand generators that should continue to drive future growth. We look forward to continuing to work with the Noble management team on closing the additional hotel properties we have under contract."

ARC Hospitality currently has an additional 21 hotels under contract with two other unrelated sellers for a total purchase price of $289.8 million. The Company intends to complete the acquisition of the remaining 32 hotels during the next seven months, consistent with previous announcements, acquiring a total of 44 hotels from the three sellers.

As previously announced, ARC Hospitality financed the acquisition of these hotels in part by drawing on its $450 million term loan facility, which was co-arranged by Deutsche Bank AG New York Branch, Deutsche Bank Securities, Inc. and BMO Capital Markets.

_____________________________________________________________________________________________

Important Notice

The statements in this press release that are not historical facts may be forward-looking statements. These forward­looking statements involve risks and uncertainties that could cause the outcome to be materially different. In addition, words such as "will," "should," "may," "anticipate," "believe," "expect" and "intend" indicate a forward­looking statement, although not all forward­looking statements include these words. This press release also contains estimates and information concerning our industry, including market position, market size, and growth rates of the markets in which we participate, that are based on industry publications and reports. This information involves a number of assumptions and limitations, and you are cautioned not to give undue weight to these projections. We have not independently verified the accuracy or completeness of the data contained in these industry publications and reports. Actual results may differ materially from those contemplated by such forward­looking statements and projections due to certain factors, including ARC Hospitality's ability to make investments in a timely manner or on acceptable terms; ARC Hospitality's ability to complete its pending acquisitions of hotels on the current terms, or at all; the effect of general market, real estate market, economic and political conditions, including the recent economic slowdown and dislocation in the global credit markets; ARC Hospitality's ability to make scheduled payments on its debt and preferred equity obligations; ARC Hospitality's ability to generate sufficient cash flows to make distributions to its stockholders; the degree and nature of ARC Hospitality's competition; the availability of qualified personnel at ARC Hospitality's advisor, property manager, Crestline Hotels & Resorts, which ARC Hospitality refers to as its sub­property manager,  and dealer manager; and ARC Hospitality's ability to qualify and maintain qualification as a REIT. Additional factors that may affect future results are contained in ARC Hospitality's filings with the Securities and Exchange Commission (the "SEC"), which are available at the SEC's website at www.sec.gov. Further, forward­looking statements, estimates or projections speak only as of the date they are made, and ARC Hospitality undertakes no obligation to update or revise forward­looking statements or estimates to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time, unless required by law.

About ARC Hospitality

ARC Hospitality is a publicly registered, non­traded real estate investment trust ("REIT"). ARC Hospitality's investment strategy focuses on acquiring stable, institutional quality and strategically located lodging properties in North America branded by premium national hotel brands. For more information on ARC Hospitality, please contact your financial professional or visit the website: www.ARCHospitalityREIT.com

Contact: Andrew G. Backman, Managing Director, Investor Relations/Public Relations

abackman@arlcap.com / (917) 475-2135

Related News

Moxy Making U.S. Debut with Opening of Moxy New Orleans by Noble Investment Group and Moxy Tempe by Twenty Four Seven Hotels

American Realty Capital Hospitality Trust Acquires Six Hotels from Summit Hotel Properties for $108.3 Million

American Realty Capital Hospitality Trust Acquires 10 Hotels for $150 Million from Summit

Crestline Hotels & Resorts Adds Nine Marriott and Hilton Hotels to its Managed Portfolio

Noble and IHG to Develop Dual-Branded Even® Hotels and Staybridge Suites® Hotel in Downtown Seattle

Noble Investment Group Completes Renovation of NC's Residence Inn by Marriott Charlotte SouthPark

ARC Hospitality Trust to Acquire Portfolio of 13 Hotels from Noble Investment Group for $300 Million

Noble Investment Group Acquires SpringHill Suites by Marriott Houston Northwest

ARC Agrees to Acquire Portfolio of 26 Hotels from Summit Hotel Properties for $351.4 Million

Noble Investment Group Acquires the 225-room Renaissance by Marriott Fort Lauderdale in Florida

Noble Investment Group Breaks Ground on StateView Hotel at NC State in Raleigh, NC

Noble Investment Group Opens 150 room Hyatt Place Boulder | Pearl Street in Colorado

Noble Investment Group Completes Renovation of 175-key Residence Inn by Marriott Cleveland Downtown

Noble Investment Group Completes Renovation of Residence Inn by Marriott Cleveland | Beachwood in OH

Noble Investment Group And Hyatt Hotels Open Hyatt Place in Downtown Columbia, SC

Noble Investment Group & Marriott Open AC Hotel by Marriott Kansas City Westport, Kansas City, MO

Crestline Hotels & Resorts to Manage 34 Hotels Acquired by American Realty Capital Hospitality Trust

Residence Inn by Marriott Cleveland Independence Completes Renovation

ARC Hospitality Trust Completes $1.8 Billion Acquisition of Equity Inns Lodging 116 Hotel Portfolio

Noble Investment Group Acquires the 169-key Courtyard by Marriott Chapel Hill in North Carolina

All News »

Please login or register to post a comment.