ARC Hospitality adds 126 hotels
There is going to be a lot more room at the inn if American Realty Capital Hospitality Trust successfully closes its $1.93 billion deal to buy 126 hotels in 35 states from Goldman Sachs Group.
Upon consummation of the deal, which totals almost 15,000 guest rooms, ARC Hospitality will become one of the nation’s largest non-traded hospitality REITs. All this muscularity comes from humble beginnings. ARC Hospitality currently has just six hotels — which it acquired on March 27 for $106.5 million — encompassing 1,181 guest rooms, and average revenue per available room of $100. The group’s occupancy rate is 72.6 percent.
A unit of Goldman Sachs bought Equity Inns for $2.2 billion in 2007. Equity Inns was subsequently taken private in October 2007. Those assets will now become part of ARC Hospitality.
ARC Hospitality’s combined portfolio will include 132 hotels totaling 16,115 guest rooms in 36 states. Florida, Tennessee and Texas are the top t