American Realty Capital Hospitality Trust Acquires 10 Hotels for $150 Million from Summit
October 21, 2015 10:01am
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.
Tags: arc hospitality,
american realty capital hospitality trust,
summit hotel properties
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, Investor Relations/Public Relations
Summit Hotel Properties Opens New Build Hyatt House Hotel Across From Orlando Universal Resort™
Hilton Garden Inn Greenville Unveils Multi-Million Dollar Renovation Led by General Manager Barrett Alexander
Summit Hotel Properties Completes $164 Million, 4-Hotel Portfolio Acquisition
Summit Hotel Properties EVP & CFO Greg Dowell to Retire in 2018; Jonathan Stanner, Current EVP and Chief Investment Officer, to Succeed
Summit Hotel Properties to Acquire Four Hotels Totaling 652 Guestrooms for $164 Million, or Approximately $252,000 Per Key
Q2 2017 Financial Reports Round Up - Part 4: Hyatt, Wyndham, Summit
Summit Hotel Properties Completes Acquisition of 181-Room Courtyard by Marriott Charlotte City Center for $56.3 Million
Summit Hotel Properties to Acquire Five-Hotel Portfolio from Xenia for $163 Million
Summit Hotel Properties Reports Q1 2017 Net Income of $28.9 Million Compared to $44.3 Million in Q1 2016
Hospitality Investors Trust Acquires Seven Hotels from Summit Hotel Properties for $66.8 Million
Summit Hotel Properties Names Jonathan P. Stanner Executive Vice President and Chief Investment Officer
Summit Hotel Properties Acquires Two Hotels For $60.2 Million
Summit Hotel Properties Reports Q4 2016 Net Income Fell to $3.3 Million, Compared with $80 Million in 2015; Pro Forma RevPAR Increased 1% in Q4
Summit Hotel Properties Completes Acquisition of 157-Room Marriott in Boulder, Colorado for $61.4 Million
Summit Hotel Properties Reports Second Quarter 2016 Net Income of $17.7 million Compared to $12.1 million in the Year Ago Quarter
Tandy O. Lofland and Mark J. Rome Co-Broker Sale of Las Colinas Holiday Inn Express & Suites
Summit Hotel Properties Completes Sale of Holiday Inn Express & Suites in Irving, Texas for $10.5 Million
Summit Hotel Properties Reports First Quarter 2016 Net Income of $44.3 million Compared to $6.4 million in the Year Ago Quarter
Summit Hotel Properties Reports Fourth Quarter And Full Year 2015 Results; Pro forma RevPAR Grew to $97.13, an Increase of 5.5%
Summit Hotel Properties Sells 6 Hotels for $108.3M, Reinstates Agreement for Sale of 10 Hotels for $89.1M, and Acquires 2 Hotels for $109M
Please login or register to post a comment.