Dive Brief:
- Atlanta-based Noble Investment Group has acquired a 10-property portfolio of upscale select-service and upscale extended stay hotels, according to a Tuesday news release.
- The portfolio comprises Marriott International, Hilton and IHG Hotels & Resorts properties across the U.S. Pacific Northwest, Midwest, Southeast and Northeast, per the release. The assets were also acquired “meaningfully below replacement cost,” per Noble. Financial terms of the deal were not disclosed, and Noble did not immediately respond to a Hotel Dive request for comment.
- The transaction furthers Noble’s capital deployment into the extended stay and select-service categories, which are “characterized by constrained supply, diversified demand drivers, and durable margin profiles,” according to the company. Last year, the firm bought 16 WoodSpring Suites hotels, an extended stay brand under Choice Hotels International, for an undisclosed sum.
Dive Insight:
The 10 properties are anchored by “complementary demand generators,” including healthcare, schools and universities, government, logistics and corporate travel, per the release. Moreover, the assets are all considered “newer vintage” and average less than six years in age.
The “rare alignment” of conditions in hospitality — including historically high construction costs, extended stay category performance and lower operating costs — can support “durable cash flow and margin resilience across cycles,” per the release.
Dustin Fisher, principal and head of acquisitions at Noble, said the newly acquired portfolio is “precisely the kind of opportunity” the firm is built for.
Fisher said the portfolio, which are well-located assets sold “at an attractive basis,” representing premium brands across the country, will allow the investment firm to “compound value through disciplined asset management.”
Noble has about $5 billion in assets under management, per the release. The investment management firm previously bought 10 WoodSpring Suites properties in July 2023 across Florida, Georgia, South Carolina, Tennessee and Kentucky.