A real estate investment company has partnered with Dallas-based Prism Hotels and Resorts to scoop up lodgings in Texas’ Permian Basin and other oil-focused regions.
Real Capital Solutions, headquartered in Louisville, Colorado, plans to spend a $200 million investment fund on hotels in the Permian Basin and other oil and gas-driven regions like Houston; Oklahoma City; Tulsa, Oklahoma; and Lafayette, Louisiana. It is capitalizing on Prism’s contacts with lenders and brokers to find the best deals. Prism will not contribute any equity to the transactions.
“We have unique access with the lending community and opportunities to find distressed hotels in non-traditional ways,” said Kevin Gallagher, Prism’s senior vice president of business development. “The traditional way is to find a listing from a broker. But because we know a lot of broker and lenders in Texas, we have unique access to deal opportunities.”
Prism, a hotel management, investment and advisory services business, will also manage all of the hotels that RCS purchases. The companies estimate RCS will buy between 15 and 20 properties.
Marcel Arsenault, founder, chairman and CEO of RCS, said he is investing in properties in oil and gas-focused areas while oil prices are low, causing dips in property values.
He expects oil prices to return to $60 to $65 per barrel in the next two years, causing more activity in those regions and an uptick in demand for hotel rooms.