ARA US Hospitality Trust Announces Acquisition of a Portfolio of Three Premium Marriott-Branded Upscale Select-Service Hotels in the United States
ARA US Hospitality Trust (“ARA H-Trust”) is pleased to announce that it has today entered into a conditional purchase and sales agreement to acquire a portfolio of three Marriott-branded upscale select-service hotels in the United States for US$84.5 million. The three freehold properties are located within the markets of Raleigh, North Carolina and San Antonio, Texas, that benefit from diversified demand from nearby corporations, universities and leisure attractions.
The accretive acquisition at a net property income yield of 8.0% is expected to increase ARA H-Trust’s pro forma distribution income from the listing date on 9 May 2019 to 30 September 2019 by US$1.4 million, translating to a rise in distribution per stapled security from 3.13 US cents to 3.38 US cents assuming the acquisition was completed on listing date. The acquisition will be funded primarily with debt and by internal cash resources. Following this acquisition, ARA H-Trust’s portfolio will grow to 41 hotels with 5,340 guest rooms geographically diversified throughout 22 states in the United States.