A hotel property in the Triangle is changing hands as part of a large portfolio deal involving a hospitality giant.
The Residence Inn by Marriott Durham Research Triangle Park is one of 16 Marriott-brand (Nasdaq: MAR) hotels being acquired by a joint partnership between NewcrestImage of Texas and Hospitality Capital Partners (HCP) of Miami.
The 122-room extended stay hotel is located at 201 Residence Inn Blvd. in south Durham west of Research Triangle Park. The hotel is situated on a nearly 23-acre lot, according to Durham County property records.
The property’s current owner, HPTRI Corporation, is an affiliate of Service Properties Trust (Nasdaq: SVC). An agreement between the parties has been reached, but the sale likely will not close until the fourth quarter. A representative for the buyer declined to disclose the sale price.
Deed records do not reflect any recent transactions involving the hotel property, which was built in 1990 and now has an assessed fair market value of $7.42 million.
The portfolio package includes Marriott hotels with a total of 2,155 rooms across nine states. That includes 13 Courtyard properties and three Residence Inn properties in Georgia, Massachusetts, North Carolina, New York, Oklahoma, Pennsylvania, South Carolina, Texas and Virginia.
Also included in the deal is The Courtyard by Marriott on Sycamore Dairy Road in Fayetteville.
“This acquisition affirms our high expectations and high confidence in hotel investments, both near term and long term,” said Mehul Patel, managing partner and CEO of NewcrestImage. “We’re hungry to be part of hospitality’s growth and prosperity.”
A representative for Dallas-based NewcrestImage told the Triangle Business Journal that the Durham property was attractive to the group due to the area’s strong travel market for both business and leisure trips. The buyer is not planning any major changes at the Residence Inn property as of now, the representative said.
HCP, an Arizona-based entity, lists real estate investors Keith Mishkin and Primo Parmar as principals. According to a press release, HCP and its principals have owned nearly 50 hotels in the western part of the country, including The Saguaro Scottsdale. An associated company, Parks Legacy Project, has 25 golf courses.
NewcrestImage is a privately held family office investment firm with a portfolio of diversified real estate assets and alternative investments. The firm has completed $3 billion in real estate transactions, including more than 200 hotel transactions. Including the current 16-property deal, NewcrestImage has added 76 hotels to its portfolio since March.
Earlier this year, an affiliate of NewcrestImage became one of the largest shareholders of Summit Hotel Properties Inc. (NYSE: INN). The company recently announced another large hotel purchase of 45 properties, though none of the included hotels are in North Carolina.
The seller, Service Properties Trust, has 30 portfolio properties in North Carolina, according to its website. That includes 13 hotels and 17 net lease properties – it is unclear if the Residence Inn is included in those figures. The real estate investment trust focuses on hotels and service-focused retail net lease properties.
Service Properties Trust also owns a 34 percent stake in Sonesta Holdco Corporation. The company itself is externally managed by The RMR Group (Nasdaq: RMR), an asset management company with over $37 billion in managed assets.