NEW YORK—American Realty Capital Hospitality Trust, Inc. has entered into a definitive, amended and restated purchase and sale agreement for the acquisition of the Equity Inns lodging portfolio, which consists of 116 hotel assets (previously 126 hotel assets). Equity Inns is being acquired from subsidiaries of W2007 Grace I, LLC and WNT Holdings, LLC, each of which are indirectly owned by one or more Whitehall Real Estate Funds, real estate private equity funds sponsored by The Goldman Sachs Group, Inc.
The transaction is scheduled to close on Feb. 27, 2015. Both parties have agreed to the removal of several contingencies that were included in the original purchase and sale agreement, which they believe provides greater certainty to the successful execution of the transaction. The acquisition of Equity Inns, when completed, will increase ARC Hospitality’s lodging portfolio to 122 hotels totaling 14,925 rooms.
Under the terms of the amended purchase agreement, ARC Hospitality, through its subsidiaries, will acquire the portfolio for a purchase price of $1.808 billion. The portfolio will consist of 116 hotels totaling 13,744 rooms across 31 U.S. states, franchised by global hotel brands including Hilton Hotels & Resorts, Marriott International, Hyatt Hotels and InterContinental Hotels Group. It will encompass a number of well-known hotel flags, including Hampton Inn, Hilton Garden Inn, Homewood Suites, Embassy Suites, Courtyard by Marriott, Residence Inn, Hyatt Place and Holiday Inn.