Dallas-based NewcrestImage is doubling down on its investment in U.S. hotels amid reports the sector outperformed earlier forecasts.
The company reached an agreement to purchase 45 hotels across 11 states from a private investment firm. The 3,300-room portfolio includes 35 properties carrying the Marriott brand, seven with a Hilton flag, two that are Choice-branded and one Radisson, according to a news release.
:quality(75))
“The current financial environment makes it very attractive to buy rather than build, and this group of fine hotels in high-traffic locations provides us with an exceptional opportunity to immediately start generating significant revenue, profit and return on investment,” NewcrestImage CEO Mehul Patel said in a statement.
Since its founding in February 2013, NewcrestImage has completed more than $3B in transactions involving more than 200 hotels and 25,000 hotel rooms in 122 communities nationwide, per the release. The most recent acquisition involved properties in Arkansas, Colorado, Illinois, Iowa, Kansas, Michigan, Minnesota, North Dakota, Ohio, South Dakota and Texas.
Patel remained bullish on hotels even amid a spike in Covid-19 infections during the latter half of last year. Certain markets remained poised for new projects despite a pause in momentum, Patel said in a previous interview.
“I think we are on the right path for growth in the hospitality space,” Patel told Bisnow in September. “We saw this summer that better days are ahead of us.”
A new report from CBRE confirms Patel’s optimism. The company’s data shows hotels performed better than expected in Q2, with revenue per available room up 38% year-over-year. CBRE predicts hotel industry growth will continue during the second half of 2022, with an expected RevPAR gain of 14.7% year-over-year, up from its previous projection of 13.1%.
Inflation could potentially slow the pace of growth, but in the meantime, NewcrestImage is taking advantage of positive momentum. Sixty properties have been acquired by the company in 2022 alone, according to the release.
)
)
)
)
)
)
)
)
)
)
)
)