Dallas-based Prism Hotels and Resorts announced today that it has partnered with Colorado's Real Capital Solutions in a $200-million investment fund initiative where Real Capital Solutions is poised to purchase hotels located in the Permian Basin in Texas, as well as other oil and gas demand-driven markets.
In addition to these properties in oil patch markets, the fund is also pursuing upscale full-service hotels in oil and gas hubs nationally including Houston, Oklahoma City, Tulsa and Lafayette, Louisiana.
“Prism’s team of highly knowledgeable hotel experts—and their deep understanding of the Texas market—made strategic sense to partner with as we launch this initiative,” said Marcel Arsenault, chairman and CEO of Real Capital Solutions. “Their hotel expertise and relationships nationally and in Texas coupled with our innovative investment strategy is sure to make for a meaningful association as we pursue this critical region ripe with possibilities.”
This opportunistic fund is the marrying of Real Capital Solutions’ macro oil prediction and financial resources and Prism’s expertise in managing successful hotel operations. Arsenault, who initially made his wealth during the savings and loan crisis, believes the time for investment is right due to the current state of the hotel industry and the timely opportunity to secure great properties with a bright future ahead. Arsenault and other experts believe that the price of oil will recover within the next two years to $60-65/bbl. “We believe hotel fundamentals will improve when drilling recovers,” he said.
“Working hand-in-hand with Marcel and his outstanding team at Real Capital Solutions will create an unmatched chance for Prism to provide RCS with hotel industry and geographic market intelligence,” said Prism Hotels and Resorts’ president and CEO Steve Van. “The Permian Basin is the richest area of oil and gas in the United States with a vast established infrastructure. Marcel has a way of fundamentally understanding timing and market conditions and as we watch this area continue to evolve for the better, now is the perfect time for action.”