The transaction was undertaken in a joint venture between GFH Capital and Arbor/Shutterstockby Kudakwashe Muzoriwa
Bahrain-based GFH Financial Group has acquired a $250 million diversified US hospitality portfolio in partnership with Arbor Lodging Partners consisting of twelve premium branded select service hotels.
In a statement, GFH Financial Group said that the transaction was undertaken in a joint venture between GFH Capital and Arbor. Arbor will hold a nine per cent stake in the portfolio and act as the asset manager.
The hotels fall 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.
Hisham Alrayes, the CEO of GFH, said, “The portfolio 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.”
“The portfolio is well diversified with assets located in key submarkets of the country that are showing growth and overall positive dynamics,” Alrayes.
The hotels which are in the California, Connecticut and New Jersey will be managed by Arbor Lodging Management, an affiliate of Arbor.
Earlier this year, GFH Financial Group issued $300 million five-year Sukuk. The deal, its first debt capital market transaction since 2008, was oversubscribed 2.5 times, with the order book exceeding $750 million.