Singaporean real estate investment trust ARA Asset Management acquired a portfolio of 38 select-service hotels across 21 U.S. states. The portfolio consists of hotels within the Hyatt Place and Hyatt House brands.
The acquisition is ARA’s debut in the U.S., and a dollar figure for the transaction was not disclosed. The company will open a new Dallas office to lead its U.S. operations. From this location, ARA will provide investment, asset management, business development and other services.
"We will look at injecting this quality portfolio into our growing REITs (real estate investment trusts) and private fund platforms in the near future as part of our multiplatform, multiproduct global fund management strategy,” John Lim, group CEO of ARA, said in a statement.
ARA was purchased and delisted in 2017 prior to its entry into the U.S. hotel sector.The company is one of the largest REITs in Asia, and directly manages Fortune Reit, Suntec Reit, Cache Logistics Trust, Hui Xian Reit, Property Reit and several REITs in Japan and Australia through a number of associate organizations.
With this latest acquisition, ARA expands its global footprint to 99 cities in 21 countries.
“We are confident of the U.S. hospitality sector, particularly in select-service hotels, where entry yields remain attractive,” Lim said.