Noble Acquires 14-Asset Marriott, Hilton and Hyatt Hotel Portfolio
Main Photo: The Renaissance Raleigh North Hills, one of the hotels within the recent acquisition deal
Date: August 2022
Names: TBA
Locations: Across the USA
Number of Keys: TBA
Seller: TBA
Buyer: Noble Investment Group, who since Qtr 2, 2021 have invested more than $1.5 billion across the United States in 40 hotels with approximately 6,000 rooms
Noble Investment Group, a real estate investment manager with specialisation in hospitality and travel sector, has acquired a 14-asset hotel portfolio, made up of Marriott International, Hilton and Hyatt branded properties.
Noble Investment Group chief investment Officer Ben Brunt said: “The acquisition of these premium branded hotels is consistent with our strategy to invest in well-located assets in high growth markets with healthy business and leisure demand.”
Following this transaction, the company is planning to invest in the physical enhancements of the newly acquired assets. Noble is also focusing on optimising operations of the acquired properties to boost market share and profitability.
Noble Investment Group CEO Mit Shah said: “Since the second quarter of last year, Noble has invested more than $1.5bn across the US in 40 hotels with approximately 6,000 rooms as we continue to capitalise on the thematic opportunity in travel and hospitality.”
Noble Investment Group, which was founded in 1993, has a diverse team specialising in upscale lodging sector in the US. The company has experience of around three decades in developing and acquiring properties across various cycles.
Noble also acquired Marriott, Hilton and Hyatt branded properties in December 2021.
The last year’s acquisition included Residence Inn by Marriott Charlottesville Downtown in Virginia, Hampton Inn & Suites Tallahassee Capitol University in Florida and Hyatt House Tallahassee Capitol University in Florida.
Furthermore, Noble completed the acquisition of two properties, including Hampton Inn Savannah Historic District and Holiday Inn Express Savannah Historic District, in January this year.
In January 2022, Host acquired a 49% stake in Noble’s asset management platform with a $90.7 million investment, Host President and CEO Jim Risoleo said at thast time “Host has the option to increase its share in the platform by an additional 26% to 51%”.
Host has also committed $150 million to Noble’s next investment fund, and Risoleo added the partnership brings a net expected earnings of “$7 million to $10 million annually over the next three years.”
Historically, Host and Noble have targeted different hotel types. Host trades in full-service hotels; properties with large room counts or event space; boutique, soft-branded properties; or resorts in markets with high barriers to entry. Noble, meanwhile, typically has acquired and developed branded, upscale, select-service hotels, as well as properties in the extended-stay segment at the lower end of the pricing tier.
“By capitalizing on Noble’s deep expertise, we will have the ability to incubate and invest in future lodging-adjacent strategies, thereby creating additional paths for long-term strategic value creation,” he said. “Those strategies include property technology solutions, development and alternative lodging.”
Risoleo said the deal will provide “chain-scale diversification.”
“Noble’s expertise with select-service and extended-stay hotels will preserve our focus on investing in upper-upscale and luxury hotels and resorts,” he said, later adding that Host wants to “play in select service without it becoming a distraction.”
“Investing in the Noble platform gives us the ability over time to grow a sustainable fee stream that is not subject to the cyclicality of the lodging industry, its commitment fees, its asset management fees, its development fees,” Risoleo said. “It gives us an opportunity to further deploy capital into the select-service space without … it becoming a distraction for the management team at Host. Mit Shah and his team have been in business since 1993. They’ve invested over $5 billion, and they have a very strong track record.”
Price: Undisclosed
THPT Comment: Noble have unleashed their desire to grow, since the Host partnership in 2021….strangely they have provided little information in terms of this deal…we shall check further
First Seen: Noble press release
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