American Realty Capital Hospitality Trust (ARC Hospitality) announced it plans to acquire a portfolio of five hotels totaling 565 rooms for US$92.5 million from affiliates of Wheelock Real Estate Fund, sponsored by Wheelock Street Capital.
ARC Hospitality intends to acquire fee simple interests in the Courtyard Austin Round Rock in Austin, Texas; the Courtyard College Station in College Station, Texas; the Courtyard Nashville at Opryland in Nashville, Tennessee; the Fairfield Inn & Suites Nashville at Opryland in Nashville, Tennessee; and the SpringHill Suites Cincinnati North/Forest Park in Cincinnati, Ohio.
The acquisition, which is expected to close in the fourth quarter, will increase ARC Hospitality’s lodging portfolio to 127 hotels totaling 15,487 rooms across 32 states.
“The hotels, which are expected to be acquired in an off-market transaction, possess what we believe to be strong in-place cash flow and also are expected to offer several attractive value-enhancement opportunities,” said ARC Hospitality Chief Financial Officer Edward Hoganson.