NorthStar Realty Finance Inks $1.1B Deal for Inland Properties

NEW YORK (The Deal) -- NorthStar Realty Finance (NRF)  said Thursday it has a deal in place to acquire a portfolio of hotel properties from Inland American Real Estate Trust for $1.1 billion, continuing an aggressive expansion campaign by the New York-based REIT.

The portfolio to be acquired is comprised of 52 extended stay and select service hotels with about 7,000 rooms. NorthStar said that it is acquiring the units in a joint venture with Chatham Lodging Trust  (CLDT) in which NorthStar will claim about 90% of the ownership interest.

NorthStar has been a prolific buyer of late. The company this year has inked deals to buy 47 hotel properties from Cerberus Capital Management and Chatham and in August said it would acquire Griffin-American Healthcare REIT II for $4 billion. It also acquired a healthcare portfolio from investment partnerships owned and managed by Formation Capital and Safanad Ltd.

Post-deals NorthStar said it would have a $3.2 billion portfolio of hotel properties consisting of 159 locations with more than 20,000 rooms. Island Hospitality, an existing partner, will manage a majority of the new hotels to be acquired from Inland.

"We are excited about the continued expansion of our portfolio of extended stay and limited service hotels and the deepening of our relationship with Chatham and Island Hospitality," NorthStar chairman and CEO David Hamamoto said in a statement. "This portfolio is expected to generate strong risk-adjusted returns for our shareholders and provides NorthStar Realty with substantial optionality, scale and diversification in a sector that we strongly believe will continue to benefit meaningfully from a growing economy."

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