WICHITA, KS—AmericanIncome Properties REIT LP, based in Vancouver, has acquired locally based Lodging Enterprises LLC and its portfolio of 54 hotels and diners for $127.5 million as its first U.S. purchase.
Jones Lang LaSalle’s Hotels & Hospitality Group arranged the sale, which includes 32 proprietary branded hotels in 19 states and 24 proprietary branded diners and also owns the Oak Tree Inn and Penny’s Diners brands. The sale also includes a large development pipeline of hotels underand long-term guaranteed room night contracts with three of the largest Class I U.S. freight railroad companies.
Managing Directors Al Calhoun and Mark Fair led the JLL team on this transaction. Fair says the limited service hotel market remains a top target for both domestic andinvestors that are seeking flexibility, resiliency and strong returns in their portfolios. “We expect a robust select service transaction market in the year ahead, as cap rates continue to trend downward and buy sentiment remains high,” he says in a statement.