American Realty Capital Closes on 3 Memphis-Area Hotels as Part of Largest Sale Ever by Non-Traded Reit
- Apr 23, 2015
In February 2015, American Realty Capital Hospitality Trust Inc. closed on the Equity Inns Lodging Portfolio in a $1.8 billion deal. The portfolio consisted of 116 hotels totaling 13,744 rooms across 31 states. The acquisition raised the company’s lodging portfolio to 122 hotels and propelled American Realty Capital as one of the leaders of the hospitality industry.
According to the Memphis Daily News, three of the hotels were located in Memphis and were acquired for a total of $39.6 million:
- The Hyatt Place Memphis Wolfchase at 7905 Giacosa Place: 126 rooms, 24-hour fitness center, outdoor pool, 1,200 square feet of flexible meeting space.
- The Hampton Inn at 5320 Poplar Avenue: 124 rooms, 468-square-foot meeting room, a business center and a free fitness center.
- The Homewood Suites at 7855 Wolf River Boulevard: 92 rooms, 24-hour fitness center, 660-square foot conference center.
“The Equity Inns purchase marks the largest acquisition in the history of the non-traded REIT industry, and propels ARC Hospitality into a leadership position among select-service lodging REITs in North America,” said Jonathan Mehlman, president and CEO of ARC Hospitality, at the time of the acquisition. “Our diligence on this transaction began nearly one year ago. Since then, we have seen positive upward trends in the portfolio’s operating results, exceeding our initial underwriting expectations.”
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