W2007 Grace Acquisition I, Inc. (fka WGCBP)

[Enterprising Investor]

W2007 Grace Acquisition I, Inc. and WNT Holdings, LLC Announce Agreement to Sell Portfolio for $1.925 Billion (6/02/14)

IRVING, TX — June 2, 2014 — W2007 Grace Acquisition I, Inc. (“Grace”) and WNT Holdings, LLC (“WNT”) announced today that certain of their subsidiaries have entered into an agreement to sell their 126 hotels for a combined purchase price of $1.925 billion, subject to certain adjustments, to affiliates of American Realty Capital Hospitality Trust, Inc. (“ARC Hospitality”). ARC Hospitality is a publicly registered, non-traded real estate investment trust (“REIT”) that intends to qualify as a REIT for tax purposes with the taxable year ending December 31, 2014. ARC Hospitality is expected to assume the existing $976 million financing secured by the 106 hotels owned by WNT’s subsidiaries and the remaining 20 hotels will be delivered unencumbered by any financing. Additionally, the selling subsidiaries have agreed to provide seller financing in certain circumstances.

The closing of the acquisition is subject to customary franchisor and lender approvals as well as other usual closing conditions and is expected to close in the fourth quarter of 2014. There can be no assurance that the transaction will close as scheduled, or at all.

Goldman, Sachs & Co. and Deutsche Bank Securities Inc. acted as financial advisors to the selling subsidiaries. RCS Capital, the investment banking and capital markets division of Realty Capital
Securities, LLC, acted as financial advisor to ARC Hospitality. It is expected that Goldman, Sachs & Co. and Deutsche Bank Securities Inc. will provide financing to ARC Hospitality in connection with the acquisition.

Important Notice

The statements in this press release that are not historical facts may be forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause the outcome to be materially different. In addition, words such as “will,” “should,” “may,” “anticipate,” “believe,” “expect” and “intend” indicate a forward-looking statement, although not all forward-looking statements include these words.

About ARC Hospitality

ARC Hospitality is a publicly registered, non-traded real estate investment trust (“REIT”) that intends to qualify as a REIT for tax purposes with the taxable year ending December 31, 2014.

MEDIA CONTACTS:

W2007 Grace Acquisition I, Inc. and WNT Holdings, LLC
Andrea Raphael
Tel: [phone]
Dan Smith
Tel: [phone]

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