NEW YORK—Lightstone Value Plus Real Estate Investment Trust (LVPR) and Lightstone Value Plus Real Estate Investment Trust II (LVPR II) announced the acquisition of four Marriott and Starwood hotels in Arkansas for $29.1 million.
LVPR acquired the Marriott Fairfield Inn in Jonesboro and the Aloft Hotel in Rogers, a Starwood property, for $18.4 million. They have a combined 213 keys. LVPR II purchased two Marriott TownePlace Suites in Little Rock and Johnson, which have a combined 184 keys, for $10.7 million.
“We believe these are four well-located premium branded hotels in diverse markets,” said David Lichtenstein, chairman and CEO of The Lightstone Group. LVPR and LVPR II are non-traded REITs sponsored by The Lightstone Group. “All four properties were built in 2008 and 2009, and will only require minimal property improvements to increase property performance, as they are in excellent condition.”
The purchase is part of Lightstone’s aggressive growth strategy in the select service hotel market. The company is seeking to acquire another 50 select service hotels in the next 12 months, throughout the country, according to Lichtenstein.
“This acquisition is representative of The Lightstone Group’s ability to identify attractive investment opportunities,” said Lichtenstein. “The hotels were acquired at a discount to replacement cost, which we believe provides them with a strong competitive advantage in their markets and downside protection to LVPR and LVPR II. We think they are well-positioned to capitalize on the improving market recovery.” The properties will be placed under new management, which will be overseen by Lightstone’s hospitality division.