GFH Capital has announced that it has acquired a portfolio of twelve premium branded US hotels located in California, Connecticut and New Jersey for $250 million. These hotels are premium branded with all being Hilton and Marriott hotels.
The Portfolio benefits from number of key considerations including the defensive nature of the select-service segment. The Portfolio has out-performed competition set and other hotel segments over multiple economic cycles.
The acquirors will undertake a Property Improvement Program in line with brand standards to create value by increasing revenue generation during the investment period. The transaction has been undertaken in a joint venture with Arbor, who will hold a circa 9% stake in the Portfolio and act as the Asset Manager. Arbor is a specialized hospitality asset manager in the US with a strong track record in investing and managing hospitality assets. Arbor Lodging Management, an affiliate of Arbor, will be managing the Portfolio.
Commenting on the acquisition, Mr. Hisham Alrayes, CEO of GFH, said: “We’re delighted to close another significant investment in the US markets, which continues to perform strongly and in this robust segment of the hospitality sector.
“The Portfolio is well diversified with assets located in key submarkets of the country that are showing growth and overall positive dynamics. The Portfolio also benefits from best in class branding with the Hilton and Marriott franchise affiliations making them well known to target audiences and a part of industry-leading guest loyalty programs driving traffic.
“The hotels are also well managed and have strong reputations. We look forward to working with our partner Arbor to add further value to these assets and expect stronger income and returns for our investors. We’re pleased to bring what is yet another unique investment opportunity to the market and to continue enabling our investors to make the most of strong performance in solid defensive sectors in the US economy.