ARC Hospitality Trust Completes $450 Million Financing with Deutsche Bank
American Realty Capital Hospitality Trust Inc., a publicly registered non-traded real estate investment trust sponsored by AR Capital, has completed a new term loan facility with Deutsche Bank AG New York Branch and Deutsche Bank Securities Inc. which will provide up to $450 million in financing for the company’s acquisitions of separate hotel portfolios from affiliates of each of Summit Hotel Properties (NYSE:INN), Noble Investment Group LLC and Wheelock Street Capital LLC. The DI Wire previously reported on this new loan facility on July 14, to read more click here.
The three hotel portfolios are expected to be acquired for an aggregate purchase price of $739.8 million in seven separate closings scheduled over the next eight months, and encompass 44 hotels totaling 5,271 rooms in 18 states.
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Jonathan P. Mehlman, president and chief executive officer of ARC Hospitality, commented, “Upon the completion of these acquisitions, our hotel portfolio will be comprised of 166 hotels, comprising 20,195 rooms in 34 states, franchised by major global brands including Marriott International, Hilton Hotels & Resorts, Hyatt Hotels, InterContinental Hotels Group and Starwood Hotels and Resorts. These acquisitions are completely consistent with our strategy focused on U.S. select service and full service hotels, and complement our existing hotel portfolio which in the first six months of this year saw RevPAR growth of 7.1 percent.”
Subject to customary funding conditions, this new term loan facility may be drawn from time to time to fund the REIT’s acquisition of the 44 hotels and for general working capital purposes. The new borrowing facility has a term of up to five years including extension options and the borrowings are expected to bear interest at a rate equal to 30-day LIBOR plus a spread of between 2.75 percent and 3.25 percent. The company’s fee interests in the hotels to be acquired will secure the term loans.
ARC Hospitality was represented by Hunton & Williams LLP.
ARC Hospitality is a publicly registered, non-traded real estate investment trust. The company’s investment strategy focuses on acquiring stable, institutional quality and strategically located lodging properties in North America branded by premium national hotel brands
