NEW YORK, Oct. 21, 2015 — American Realty Capital Hospitality Trust, Inc. ("ARC Hospitality" or the "Company") announced today that it has completed its previously announced acquisition of 10 hotels for a purchase price of $150.1 million from Summit Hotel Properties (NYSE: INN) ("Summit"), a publicly-traded hotel real estate investment trust. This transaction represents the first 10 of 26 hotels that the Company announced it will be acquiring from Summit for a total purchase price of $347.4 million. In addition, ARC Hospitality currently has another 18 hotels under contract with unrelated Sellers for $392.4 million. ARC Hospitality intends to close on all of the acquisitions during the next eight months consistent with previous announcements, for an aggregate of 44 hotels.
The 10 hotels announced today are all branded with Marriott International and Hilton Hotels & Resorts and are located in Baton Rouge, Louisiana; Flagstaff, Arizona; Fort Wayne, Indiana; Medford, Oregon; and El Paso, Texas. The acquisition increases ARC Hospitality's current lodging portfolio to 132 hotels totaling 16,014 rooms across 32 states.
"We are delighted to acquire these high-quality, stabilized lodging properties with strong brand affiliations from Summit," commented Jonathan P. Mehlman, Chief Executive Officer of ARC Hospitality. "This transaction shows that we are continuing to execute our focused strategy of acquiring market-leading select service hotels with strong brands and durable cash flows. We look forward to continuing to work with Dan Hansen and his management team on closing the additional hotel properties we have under contract."
Edward Hoganson, Chief Financial Officer of the Company, added, "These 10 hotels have all delivered robust year-over-year financial performance, and possess strong operating fundamentals that we expect will continue to drive our future growth. Management of these properties will be divided amongst our affiliated hotel operator, Crestline Hotels & Resorts, and Interstate Hotels & Resorts, which currently operates several of the hotels we are acquiring from Summit. We are excited to broaden our scope of property manager relationship with Interstate Hotels & Resorts while continuing to draw upon Crestline's proven management performance."
As previously announced, ARC Hospitality financed the acquisition of these hotels with a draw 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.
