AR Capital Purchases Majority Stake in Hotel Operator
NEW YORK, Sept. 16, 2013 /PRNewswire/ -- AR Capital, LLC ("ARC") announced today that it has completed the purchase of a controlling interest in Crestline Hotels and Resorts, Inc. ("Crestline") from Grupo Barcelo, a hotel company in its third generation of family ownership headquartered in Majorca, Spain. In Crestline, ARC has acquired a majority interest in the 17th largest hotel manager in the United States.
Crestline currently manages 43 hotels, containing in excess of 7,000 rooms, and operates mostly in the select service and full service segments. Crestline employs over 3,500 associates. Crestline is an approved operator for Hilton Hotels, Intercontinental Hotel Group, Marriott International and Starwood Hotels and Resorts, among others, and acts as a property manager for hospitality industry owners such as: Apple REIT; Armada Hoffler; Barcelo Crestline; Chesapeake Lodging Trust; Host Hotels & Resorts; RLJ Lodging Trust; and Sunstone Hotel Investors.
"ARC's investment in Crestline was opportune," explained Nicholas S. Schorsch, Chairman and CEO of ARC, "in light of the improving U.S. economy, the resurgence of consumer confidence and business travel, strong pricing power emerging in many markets and the lack of new supply in the industry."
Crestline has extensive experience acquiring hotels, managing hospitality assets and providing operating oversight. Crestline has generated positive results in both public and private ventures. Crestline maintains a network of relationships and is able to participate in the hospitality sector from a variety of structures given its involvement at both the asset and corporate level of the hotel business.
Founded in 2006, ARC is a full-service investment management firm providing advisory services to retail and institutional investors. ARC is an active sponsor and manager of public and private real estate investments, a business development company and other investment products. Collectively, ARC's senior team of seasoned professionals has acquired and managed over $10 billion of real estate, as well as $5 billion of corporate sale-leasebacks and net leased properties. For more information, visit www.americanrealtycap.com.
Since its inception in March of 2000, Crestline has been involved in the management of hotels, conference centers and resorts. Crestline has undertaken a partnership approach with the hotel owners, investors and employees at each of its managed hotels throughout the United States. Crestline has extensive experience acquiring hotels, managing properties and providing operations oversight in both public and private ventures. Crestline is led by James Carroll, CEO, Edward Hoganson, CFO and Pierre Donahue, General Counsel.
SOURCE AR Capital, LLC