A unit of lodging real estate investment trust Sotherly Hotels Inc.'s operating partnership bought the 318-room Hyatt Centric Arlington hotel in Virginia for $79.7 million, reflecting a cap rate of about 6.3%.
The full-service hotel underwent a $6.2 million overhaul in 2016 as part of its conversion to Hyatt Centric. For the 12-month period ended Dec. 31, 2017, the hotel operated at 84% occupancy.
Sotherly Hotels closed on a new $57.0 million first and second mortgage with Fifth Third Bank to partially finance the purchase and executed a new franchise agreement with Hyatt Hotels Corp.
Highgate Hotels LP will continue to manage the hotel under a new agreement.
