The privately held NewcrestImage announced on Tuesday that it signed an agreement to purchase 25 La Quinta Inns & Suites-branded hotels from LQ Management for an undisclosed sum.
The sale comes after LQ Management, Irving, Texas, announced in October that it planned to sell 46 of its company-owned hotel properties that no longer meet brand criteria, without specifying which properties these were.
NewcrestImage, with has offices in Irving and Frisco, Texas, is the result of merger of Newcrest Management and Image Hospitality that was finalized on May 31. The hotel developer and operator will manage the properties and plans to renovate and rebrand them under flags yet to be determined. The amount the company is investing in the renovations remains undisclosed and the renovations will vary by property. LQ Management said some of the hotels will retain the La Quinta flag but no later than December 31.
“This portfolio represents a unique investment opportunity,” according to Mehul Patel, managing partner of NewcrestImage. “We are acquiring solid assets in very desirable, high-traffic locations that will become even more valuable after we strategically renovate, rebrand, and reposition them.”
The hotels, which have a total of 2,978 guestrooms, are located in the states of Arkansas, Florida, Louisiana, Missouri, New Mexico, Oklahoma, Tennessee, Texas, and Virginia. A list of the exact hotels involved in the purchase has not been disclosed.
NewcrestImage currently owns and operates 12 hotel properties under LQ Management, IHG, Hilton Worldwide and Marriott International franchises. The company also has six hotel properties under construction, and another three real estate properties in various stages of development.