In a joint venture, Dallas-based NewcrestImage and Phoenix-based Hospitality Capital Partners have acquired 16 hotels with a total of 2,155 rooms for $137.3 million from Service Properties Trust, a Massachusetts-based real estate investment trust. The transaction was handled by Al Calhoun and Mark Fair at CBRE in Atlanta.
The portfolio consists of 13 Courtyard by Marriott hotels and three Residence Inn by Marriott hotels that are located in nine states—Georgia, Massachusetts, New York, North Carolina, Oklahoma, Pennsylvania, South Carolina, Texas and Virginia. Eleven of the properties underwent major renovations between 2018 and 2019.
“This transaction suits our company’s style of strategically acquiring properties with strong fundamentals, especially during times of a difficult or slowed down economy,” Mehul Patel, managing partner and CEO of NewcrestImage, said in a statement.
According to HCP principals Keith Mishkin and Primo Parmar, this is "an opportunity for our joint venture with NewcrestImage to add revenue immediately, while also growing long-term profit potential and asset value.”
HCP and its principals have owned almost 50 hotels in the western United States, notably The Saguaro Scottsdale (Ariz.), located in that city’s historic Old Town area. Other projects include 25 golf courses through its associated company, Parks Legacy Project.
NewcrestImage owns more than 70 hotels across the country with almost 8,000 rooms. Since its founding in 2013, NewcrestImage has completed more than $3 billion in transactions involving almost 275 hotels with almost 30,000 hotel rooms in 130 communities across the country.
“Closing this transaction was particularly satisfying given the size of the deal and the challenges we're facing in the debt markets," said Calhoun, vice chairman with CBRE Hotels in Atlanta. "We were able to complete this transaction by breaking it up into three deals with three different lenders. These lenders had great confidence in the sponsorship and the quality of the brands and markets.”