American Realty Capital Hospitality Trust (ARC Hospitality) has completed the acquisition of ten hotels from Summit Hotel Properties for $150.1m.
The new development marks the purchase of the first ten of 26 hotels the company is planning to acquire from Summit for a total purchase price of $347.4m.
ARC Hospitality CEO Jonathan P Mehlman said: "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.
"We look forward to continuing to work with Dan Hansen and his management team on closing the additional hotel properties we have under contract."
Currently, ARC Hospitality has another 18 hotels under contract with unrelated sellers for $392.4m.
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 ten 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."
The acquisition is supported by a $450m term loan facility that was co-arranged by Deutsche Bank and BMO Capital Markets.
In June, ARC Hospitality 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, as well as one full-service hotel, totalling 1,913 rooms, in nine US states.