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Kuwait: Gatehouse Capital K.S.C.C. ("Gatehouse Capital"), a Kuwait-based investment advisor and part of Gatehouse Financial Group Limited ("Gatehouse"), is pleased to announce that it has purchased a portfolio of ten select service hotels (the "Portfolio") in the United States with the assistance of Arch Street Capital Advisors, LLC. The Portfolio is geographically dispersed across Michigan, Minnesota and Wisconsin. Each of the hotels in the Portfolio has a long-term license agreement to operate the Marriott select service brands TownePlace Suites and SpringHill Suites. This acquisition marks Gatehouse's second investment into the select service hospitality space, following its acquisition in 2014 of a Marriott Residence Inn located in Midtown, Manhattan. Gatehouse Capital has acquired the Portfolio in partnership with deeply experienced US-based hotel operators Interstate Hotels & Resorts and Waramaug Hospitality.
TownePlace Suites is an extended stay, select service brand of Marriott with over 250 locations. The brand targets business and leisure travellers who require more spacious, suite-style accommodations with fully equipped kitchens, separate work and sitting areas, and at least one bedroom. SpringHill Suites is an all-suites, select service brand of Marriott with over 300 locations that similarly caters to travellers who require more spacious accommodations with dedicated work, relaxation and kitchen areas.
Following the acquisition of the Portfolio, Gatehouse Capital intends to implement an extensive Property Improvement Plan to renovate the properties and position the Portfolio well into the future. These upgrades are expected to drive further Revenue per Available Room ("RevPAR") growth in the Portfolio. The Portfolio benefits from an acquisition price below new build cost, which acts as mitigant to competitive threats from future supply. Further, as the Portfolio is comprised of ten separate hotels, it benefits from diversification and is not overly reliant upon the performance of a single one asset.
Fahed Boodai, Chairman of Gatehouse Financial Group stated, "As the US economy continues to expand, the select service hospitality market exhibits attractive investment characteristics. The Portfolio is well-positioned to capitalise on demand from business travellers, as the hotels are located in close proximity to several Fortune 500 corporations, including Ford Motor Company, CH Robinson, United Health Group, and Harley-Davidson. The Midwest United States is home to many high performing global businesses, giving us further confidence that this is a solid investment opportunity with significant capital growth potential and secure income returns."
Boodai added: "Gatehouse continues to build on its excellent track record of real estate investment in the US and UK. Our clients understand that Gatehouse is a leader in the delivery of high-quality, income generating real estate investments. The Portfolio is an excellent addition to the investment portfolio."
"Interstate's success is due in part to its strategic partnerships," said Leslie Ng, Interstate's Chief Investment Officer. "We are delighted to have a leading international investor like Gatehouse Capital as our partner as well as continuing our work with Waramaug, a highly regarded firm in the hospitality sector."
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About Gatehouse Capital
Gatehouse Capital K.S.C.C. ("Gatehouse Capital"), is a Kuwait-based investment advisory firm and part of Gatehouse Financial Group Limited ("Gatehouse"). Founded in 1998, Gatehouse Capital has focused on Global Real Estate Investments as well as Wealth Management Services. Gatehouse advises on transactions with assets based in the United States and United Kingdom. For more information please visit www.gc.com.kw
About Interstate Hotels & Resorts
Interstate Hotels & Resorts, Inc., a wholly-owned subsidiary of a 50/50 joint venture between subsidiaries of Thayer Lodging Group and Jin Jiang Hotels, is the leading U.S.-based global hotel management company, operating branded full- and select-service hotels and resorts, convention centers and independent hotels worldwide. Interstate and its affiliates manage nearly 435 hotels with over 77,000 rooms in North America, the UK, Europe, Russia and the CIS, and China, including ownership interest in 32 hotels. In addition, Interstate has executed agreements to manage 37 hotels with over 5,100 rooms under construction or development throughout the world. For more information, please visit www.interstatehotels.com.
Connect with Interstate at www.linkedin.com/company/interstate-hotels-resorts, www.facebook.com/InterstateHotels, and www.interstatehotels.com/careers.
About Waramaug Hospitality
Waramaug Hospitality is a privately held investment group focused on acquiring legacy branded assets throughout the United States. Specializing in hotels with a unique turnaround story, Waramaug has utilized its wealth of resources to create a track record in successfully rebranding, repositioning and renovating assets to reach their full potential and become market leaders.
For more information, contact Jay Litt at jlitt@whamhg.com.
About Arch Street Capital Advisors, LLC
Arch Street Capital Advisors, LLC is a full service real estate investment and advisory firm founded in 2003. Arch Street specializes in advising international investors on their U.S. real estate strategies and has advised clients on more than $5.5 billion of transactions. On behalf of its clients the company manages a diverse portfolio of investments spanning multiple real estate sectors and risk-return profiles. The company possesses significant transactional experience and expertise servicing the needs of Sharia-compliant capital.
For more information please visit www.archstreetcapital.com
Media enquiries:
Wakim Zeidan
Corporate Communication Director
wzeidan@gc.com.kw
M: 00965 98005430
© Press Release 2016
