GFH Capital has announced that it has acquired a diversified US hospitality portfolio worth $250 million in partnership with Arbor Lodging Partners (Arbor).
A unit of GFH Financial Group based in the Dubai International Financial Centre (DIFC), GFH Capital is regulated by the Dubai Financial Services Authority (DFSA).
A specialised hospitality asset manager in the US with a strong track record in investing and managing hospitality assets, Arbor boasts 12 premium branded select service hotels located in California, Connecticut and New Jersey.
These hotels are premium branded with each falling under either a Hilton Brand hotel (Hilton Garden Inn, Hampton Inn, and Homewood Suites) or a Marriott Brand hotel (Courtyard, Residence Inn, and Springhill Suites).
The portfolio benefits from number of key considerations including the defensive nature of the select-service segment, said a statement from Dubai-based GFH Capital.
The transaction has been undertaken in a joint venture with Arbor, which will hold a 9% stake in the portfolio and act as the asset manager, it added.
The portfolio has out-performed comp set and other hotel segments over multiple economic cycles.
Furthermore, GFH and Arbor will undertake a property improvement programme in line with brand standards to create value by increasing revenue generation during the investment period.
On the deal, GFH Capital CEO Hisham Alrayes 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. It 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 programmes driving traffic," stated Alrayes.
According to him, 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," he stated.
"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," he added. -TradeArabia News Service