NEW YORK, Sept. 17, 2013 — AR Capital, LLC (“ARC”) announced today that it has completed the purchase of a controlling interest in Crestline Hotels and Resorts, Inc. (“Crestline”) from Grupo Barcelo, a hotel company in its third generation of family ownership headquartered in Majorca, Spain. In Crestline, ARC has acquired a majority interest in the 17th largest hotel manager in the United States.
Crestline currently manages 43 hotels, containing in excess of 7,000 rooms, and operates mostly in the select service and full service segments. Crestline employs over 3,500 associates. Crestline is an approved operator for Hilton Hotels, Intercontinental Hotel Group, Marriott International and Starwood Hotels and Resorts, among others, and acts as a property manager for hospitality industry owners such as: Apple REIT; Armada Hoffler; Barcelo Crestline; Chesapeake Lodging Trust; Host Hotels & Resorts; RLJ Lodging Trust; and Sunstone Hotel Investors.
“ARC’s investment in Crestline was opportune,” explained Nicholas S. Schorsch, Chairman and CEO of ARC, “in light of the improving U.S. economy, the resurgence of consumer confidence and business travel, strong pricing power emerging in many markets and the lack of new supply in the industry.”
Crestline has extensive experience acquiring hotels, managing hospitality assets and providing operating oversight. Crestline has generated positive results in both public and private ventures. Crestline maintains a network of relationships and is able to participate in the hospitality sector from a variety of structures given its involvement at both the asset and corporate level of the hotel business.