ARC Hospitality completes purchase of 10 Summit hotels
American Realty Capital Hospitality Trust completes the acquisition of 10 hotels from Summit Hotel Properties for US$150 million.
The development marks the purchase of the first of 26 hotels the company plans to acquire from Summit for a total purchase price of US$347.4 million.
?This transaction shows that we are continuing to execute our focused strategy of acquiring market leading select service hotels with strong brands and durable cash flows,? said ARC Hospitality CEO Jonathan P. Mehlman.
Currently, ARC Hospitality has another 18 hotels under contract with unrelated sellers for $392.4 million. ARC Hospitality is expected to close on all acquisitions during the next eight months, the company stated.
ARC Hospitality chief financial officer Edward Hoganson said: ?These 10 hotels have all delivered robust year-over-year financial performance and possess strong operating fundamentals that we expect will continue to drive our future growth.
?Management of these properties will be divided amongst our affiliated hotel operator, Crestline Hotels & Resorts and Interstate Hotels & Resorts, which currently operates several of the hotels we are acquiring from Summit.?