ARC HOSPITALITY TO ACQUIRE EQUITY INN LODGING PORTFOLIO IN $1.93B DEAL

NEW YORK CITY — American Realty Capital Hospitality Trust (ARC Hospitality) has entered into an agreement to acquire Equity Inns’ lodging portfolio for $1.93 billion. Subsidiaries of W2007 Grace I and WNT Holdings, which are both indirectly owned by one or more Whitehall Real Estate Funds, are selling the 126-hotel, 14,934-room portfolio. The portfolio is franchised by various global hotel brands, including Hilton Hotels & Resorts, Marriott International, Hyatt Hotels and InterContinential Hotels Group, and includes numerous well-known hotel flags, including Hampton Inn, Hilton Garden Inn, Homewood Suites, Embassy Suites, Courtyard, Residence Inn, Hyatt Place and Holiday Inn. When complete, the acquisition will increase ARC Hospitality’s portfolio to 132 hotels totaling 16,115 rooms. Closing of the acquisition is subject to customary franchisor and lender approvals and the deal is expected to close in fourth quarter 2014. RCS Capital acted as financial advisor to the buyer, while Goldman Sachs & Co. and Deutsche Bank Securities advised the sellers. It is anticipated that Deutsche Bank Securities and Goldman Sachs & Co. will provide financing in connection with the acquisition.