American Realty Capital Hospitality Trust (ARC Hospitality) has signed an agreement to purchase 13 hotels from affiliates of Noble Investment Group for $300m.
Under the deal, ARC Hospitality will acquire 12 premium-branded select-service and extended-stay hotels and one full-service hotel, totalling 1,913 rooms, in nine US states.
The properties being acquired are situated in Boston, Atlanta, Monterey in California, Columbus in Ohio, Fort Worth in Texas, Chicago, Minneapolis, Birmingham in Alabama and northern and central New Jersey.
All properties are franchised by major global brands such as Hyatt Hotels, Hilton Hotels & Resorts and Marriott International, while hotel flags comprise Hyatt Place, Hilton Garden Inn, Hyatt House, Courtyard by Marriott and Hilton.
ARC Hospitality CEO Jonathan Mehlman said: "We believe these assets, when acquired, will be in the upper echelon of our portfolio and we expect these hotels to lead our RevPAR growth across the company.
"We are excited that, assuming all recently announced transactions are completed, our aggregate portfolio will represent a competitive unlevered yield in the mid-7% range based on trailing 12 month net operating income as of May 2015 at an attractive basis, which we believe is well below replacement cost."
The deal will increase ARC Hospitality’s lodging portfolio to 166 hotels, totalling 20,193 rooms, across 34 states in the US.
Subject to customary franchisor approvals and other conditions, the deal is expected to complete in three separate tranches during the fourth quarter of 2015 and first quarter of 2016.