NewcrestImage has reached a definitive agreement to purchase 45 hotels from a private investment firm. The terms of the transaction were not disclosed.
The portfolio totals approximately 3,300 rooms and includes 35 Marriott-branded, seven Hilton-branded, one Radisson-branded, and two Choice-branded properties, which are located in 11 states —Arkansas, Colorado, Illinois, Iowa, Kansas, Michigan, Minnesota, North Dakota, Ohio, South Dakota, and Texas.
“The current financial environment makes it very attractive to buy rather than build, and this group of fine hotels in high-traffic locations provides us with an exceptional opportunity to immediately start generating significant revenue, profit, and return on investment,” said Mehul Patel, managing partner and CEO of NewcrestImage.
Since its founding in February of 2013, NewcrestImage has completed more than $3 billion in transactions involving more than 200 hotels and 25,000 hotel rooms in 122 communities across the country.
This has been a year of transition for NewcrestImage, which began with the sale in January to Summit Hotel Properties of 27 hotels totaling 3,533 guest rooms. Since then, the company has focused on creating a portfolio with transactions to acquire 15 hotels, prior to the current 45-property transaction.
In late June, Dallas-based NewcrestImage acquired the 175-room Cambria Hotel in Southlake, Texas, a location six miles from DFW International Airport and five miles from the Gaylord Texan Convention Center.
In July, the company reached an agreement with Highgate Hotels to acquire four LaQuinta properties with a total of 696 rooms in key destination markets. Closings have occurred for all of these hotels—LaQuinta Inn & Suites Irving DFW North, LaQuinta Phoenix North, LaQuinta Inn & Suites Anaheim, and LaQuinta Inn & Suites LAX. Also in July, NewcrestImage acquired the 135-all suites TownePlace Suites Dallas Las Colinas, located near two major airports and two major convention centers—seven miles from both DFW International and Love Field, one mile from the Irving Convention Center, and 10 miles from the Gaylord Texan Convention Center.
NewcrestImage owns and operates two historic hotels: the 325-room, 29-floor Magnolia Hotel in downtown Dallas and the 164-room, 17-floor Sinclair Hotel in downtown Fort Worth.
Two law firms —Akin Gump Strauss Hauer & Feld and Munsch Hardt Kopf & Harr—served as legal advisors to NewcrestImage for the latest 45-hotel transaction.