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Real Capital, Prism in $200M development deal

Dallas-based Prism Hotels & Resorts is partnering with Louisville, Colorado-based Real Capital Solutions in a US$200 million investment fund initiative whose goal is to purchase hotels in U.S. oil and gas markets.

The purchases would focus on Texas’ Permian Basin and upscale, full-service hotels cities including Houston, Oklahoma City and Tulsa, Oklahoma, and Lafayette, Louisiana.

Marcel Arsenault, chairman and CEO of Real Capital Solutions, believes that the current state of the hotel industry and a recovery in oil prices to US$60-$65 a barrel in the next two years (crude oil is in the mid-$40s currently) makes the region “ripe with possibilities.” “We believe hotel fundamentals will improve when drilling recovers,” he said.

The fund combines Real Capital Solutions’ oil prediction and financial resources and Prism’s expertise in hotel operations.

“The Permian Basin is the richest area of oil and gas in the United States with a vast established infrastructure. Marcel has a way of fundamentally understanding timing and market conditions and as we watch this area continue to evolve for the better, now is the perfect time for action,” said Prism Hotels and Resorts’ President and CEO Steve Van.

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