{"id":1004164314,"date":"2017-01-17T04:11:25","date_gmt":"2017-01-17T12:11:25","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004164314"},"modified":"2020-05-18T16:06:16","modified_gmt":"2020-05-19T00:06:16","slug":"big-changes-to-accompany-400m-infusion-in-arc-hospitality","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/big-changes-to-accompany-400m-infusion-in-arc-hospitality\/","title":{"rendered":"Big Changes to Accompany $400M Infusion in ARC Hospitality"},"content":{"rendered":"

By Scott Baltic, Contributing Editor <\/em><\/p>\n

New York<\/strong>\u2014An affiliate of Brookfield Strategic Real Estate Partners II has committed to invest up to $400 million, on a delayed draw basis, in American Realty Capital Hospitality Trust Inc.<\/a>, the latter announced Friday. The Brookfield entity<\/a> is a real estate private equity fund managed by affiliates of Brookfield Asset Management Inc.<\/p>\n

\"Bruce<\/a>

Bruce Wiles<\/p><\/div>\n

As part of the transaction, Brookfield reportedly will be afforded \u201ccertain corporate governance and approval rights over certain activities\u201d of ARC Hospitality and its operating partnership, and the REIT\u2019s board will be overhauled.<\/p>\n

In addition, once the transaction has closed, and under a separate agreement with ARC Hospitality\u2019s current external manager, American Realty Capital Hospitality Advisors LLC, ARC Hospitality will become self-managed and will terminate the existing advisory agreement.<\/p>\n

Finally, ARC Hospitality will be renamed as Hospitality Investors Trust Inc.<\/p>\n

The closing is expected to occur in March. ARC Hospitality did not reply to Commercial Property Executive<\/em>\u2019s request for further information.<\/p>\n

The ARC Hospitality board of directors will be increased from four members to seven. Of the seven, two members will be appointed by Brookfield; they are expected to be Bruce Wiles, who will serve as board chairman, and Lowell Baron, both of whom hold senior management positions at Brookfield.<\/p>\n

Stanley Perla and Abby Wenzel will continue as directors, and it\u2019s anticipated that Jonathan Mehlman, the company\u2019s president & CEO, will be added to the board, along with two new independent directors nominated by the existing board and approved by Brookfield.<\/p>\n

Among the uses to which the $135 million initial portion of Brookfield\u2019s investment will be put is the acquisition for $66.8 million of a seven-hotel, 651-key portfolio, pursuant to ARC Hospitality\u2019s pending purchase agreement with Summit Hotel Properties Inc. The Marriott International, Hilton Hotels & Resorts and InterContinental Hotels Group properties are in Germantown, Tenn.; Ridgeland, Miss.; and Jackson, Miss.<\/p>\n

The purchase will boost the company\u2019s lodging portfolio to 148 hotels and 17,844 keys across 33 states.<\/p>\n

\u201cWe expect Brookfield\u2019s investment commitment to enhance our ability to complete our property renovations on a timely basis and to close the Summit acquisition, which we believe will enhance our portfolio value,\u201d Edward Hoganson, ARC Hospitality\u2019s CFO, said in a prepared statement.<\/p>\n

\u201cIn addition, by addressing our near-term financing needs, the investment should provide the Company with a more sustainable capital structure and an improved debt maturity profile. Moreover, we believe the Company’s transition to self-management will allow us to operate more cost efficiently\u2026.\u201d<\/p>\n

Image courtesy of Thayer Lodging, Brookfield Hotel Properties<\/em><\/p>\n

<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Once the deal with Brookfield closes in March, the group will operate as Hospitality Investors Trust Inc.<\/p>\n","protected":false},"author":882,"featured_media":1004164337,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21743,21808,21751,21783,23891,21742],"tags":[33495,33496,33497],"class_list":["post-1004164314","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-deals","category-featured","category-hotel","category-investment","category-national","category-latest","tag-american-realty-capital-hospitality-trust","tag-brookfield-asset-management","tag-brookfield-properties"],"acf":[],"yoast_head":"\nBig Changes to Accompany $400M Infusion in ARC Hospitality - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/big-changes-to-accompany-400m-infusion-in-arc-hospitality\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Big Changes to Accompany $400M Infusion in ARC Hospitality\" \/>\n<meta property=\"og:description\" content=\"Once the deal with Brookfield closes in March, the group will operate as Hospitality Investors Trust Inc.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/big-changes-to-accompany-400m-infusion-in-arc-hospitality\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2017-01-17T12:11:25+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-05-19T00:06:16+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2017\/01\/Bruce-Wiles.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"500\" \/>\n\t<meta property=\"og:image:height\" content=\"374\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Scott Baltic\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/big-changes-to-accompany-400m-infusion-in-arc-hospitality\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/big-changes-to-accompany-400m-infusion-in-arc-hospitality\\\/\"},\"author\":{\"name\":\"Scott Baltic\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/#\\\/schema\\\/person\\\/61ac1450f3ffaa0e850b834c28526555\"},\"headline\":\"Big Changes to Accompany $400M Infusion in ARC Hospitality\",\"datePublished\":\"2017-01-17T12:11:25+00:00\",\"dateModified\":\"2020-05-19T00:06:16+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/big-changes-to-accompany-400m-infusion-in-arc-hospitality\\\/\"},\"wordCount\":441,\"commentCount\":0,\"image\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/big-changes-to-accompany-400m-infusion-in-arc-hospitality\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/wp-content\\\/uploads\\\/sites\\\/46\\\/2017\\\/01\\\/Bruce-Wiles.jpg\",\"keywords\":[\"American Realty Capital Hospitality Trust\",\"Brookfield Asset Management\",\"Brookfield Properties\"],\"articleSection\":[\"Deals\",\"Featured\",\"Hotel\",\"Investment\",\"National\",\"News\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/big-changes-to-accompany-400m-infusion-in-arc-hospitality\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/big-changes-to-accompany-400m-infusion-in-arc-hospitality\\\/\",\"url\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/big-changes-to-accompany-400m-infusion-in-arc-hospitality\\\/\",\"name\":\"Big Changes to Accompany $400M Infusion in ARC Hospitality - 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