American Realty Capital Hospitality Trust acquired two hotels for $48.6 million from affiliates of Noble Investment Group. This transaction represents the first two of 13 hotels that the Company announced it will be acquiring from Noble for a total purchase price of $300 million.
The two hotels are the 127-room Hyatt Place Chicago/Schaumburg, Ill., and the 204-room Hilton Garden Inn Monterey, Calif. These purchases increase ARC Hospitality's current lodging portfolio to 134 hotels totaling 16,345 rooms across 32 states.
ARC Hospitality currently has an additional 21 hotels under contract with two other unrelated sellers for a total purchase price of $289.8 million. The company intends to complete the acquisition of the remaining 32 hotels during the next seven months, consistent with previous announcements, acquiring a total of 44 hotels from the three sellers.
ARC Hospitality financed the acquisition of these hotels in part by drawing on its $450 million term loan facility, which was co-arranged by Deutsche Bank AG New York Branch, Deutsche Bank Securities and BMO Capital Markets.