The portfolio includes 13 Courtyard and three Residence Inn properties located in Georgia, Massachusetts, North Carolina, New York, Oklahoma, Pennsylvania, South Carolina, Texas and Virginia. Closing on the transaction is expected during the fourth quarter.
“This acquisition affirms our high expectations and high confidence in hotel investments, both near term and long term,” said Mehul Patel, managing partner/CEO, NewcrestImage. “We’re hungry to be part of hospitality’s growth and prosperity.”
“Today’s marketplace offers lots of opportunities to build value and improve cash flow if you’re willing to think creatively and outside the mainstream,” he told Hotel Business. “We’re certainly a company that always thinks big and bold, and then we’re not afraid to move decisively but with discipline.”
According to HCP principals Keith Mishkin and Primo Parmar, “Partnering with NewcrestImage for this transaction is grounded in our strong trust and respect for the company. We very much look forward to working with Mehul and his team to build the value of these hotels and to deliver uncompromising quality for guests as well as investors.”
HCP and its principals have owned almost 50 hotels in the western U.S., notably The Saguaro Scottsdale, located in that city’s historic Old Town area. Other projects include 25 golf courses through their associated company, Parks Legacy Project.
After selling 27 hotels in January to Summit Hotel Properties, Dallas-based NewcrestImage has been in an active acquisition mode. Since March and including this new deal, the company has added 76 hotels with approximately 7,600 rooms.
In its most recent acquisition, the company agreed to purchase 45 hotels with a total of approximately 3,300 rooms from a private investment firm. The portfolio includes 35 Marriott-branded, seven Hilton-branded, two Choice-branded, and one Radisson-branded properties that are located in 11 states—Arkansas, Colorado, Illinois, Iowa, Kansas, Michigan, Minnesota, North Dakota, Ohio, South Dakota and Texas.
“We are builders and we have a rich history of building distinctive hotels, but in the current economy buying makes more economic sense than new construction so we are now focused on turning good hotels into even better hotels,” said Patel. “That’s a win for us and for the properties as well as for the communities where we do business.”