BRE Select Hotels Corp., an affiliate of New York City-based Blackstone Group, has agreed to purchase Apple REIT Six in a US$1.2 billion deal.
Richmond, Virginia-based Apple REIT Six owns 66 hotels with more than 7,600 guestrooms across 18 states under brands including Courtyard by Marriott, Fairfield Inn and Hilton Garden Inn.
The purchase, which includes transaction costs and debt, is subject to shareholder approval and is expected to be complete in the first half of 2013.
“The transaction represents the materialization of private equity’s hunger for yiled and appetite for bulk acquisitions,” said David Loeb, analyst with Robert W. Baird, Milwaukee, Wisconsin. “Our recent conversations with private equity contacts revealed that select-service portfolios could trade for as much as 100 bps below single-asset transactions.”