Kuwaiti company acquires 10 US hotels for US $137m

Kuwait’s Gatehouse Capital has signed off a US $137 million (AED503 million) deal to acquire 10 ‘select service’ hotels in the US, reported sister title Arabian Business.

The firm, a subsidiary of Gatehouse Financial Group, said that the deal was completed in conjunction with US hotel management firm Interstate Hotels & Resorts and private investment company Waramaug Hospitality.

The Marriott-branded properties are all based in Michigan, Minnesota and Wisconsin.

The purchase marks Gatehouse’s second investment into select service hotels, following the acquisition of a Marriott Residence Inn in Manhattan two years ago.

“As the US economy continues to expand, the select service hospitality market exhibits attractive investment characteristics,” said Gatehouse chairman Fahed Boodai, in a press statement.

“The Portfolio [of these 10 hotels] is well-positioned to capitalise on demand from business travellers, as the hotels are located in close proximity to several Fortune 500 corporations, including Ford Motor Company, CH Robinson, United Health Group, and Harley-Davidson.

“The Midwest United States is home to many high performing global businesses, giving us further confidence that this is a solid investment opportunity with significant capital growth potential and secure income returns.”