Carlyle Kicks In $100M Equity in Hotel JV

WILLIAMSBURG, VA-MHI Hospitality, a self-advised lodging REIT focused on full service hotels in the Mid-Atlantic, Midwest and Southeastern US, has partnered with Carlyle Group. In the venture the DC-based private equity’s US real estate fund, Carlyle Realty Partners V, has committed up to $100 million for a 36-month term.

Under the agreement, Carlyle Group will fund up to 90% of the equity of an acquisition, with MHI kicking in between 10% and 25%. MHI is also responsible for sourcing the investment opportunities, which are expected to fall in the $30 million or more range.

MHI Hotels Services LLC will manage the hotels acquired by the joint venture and be paid a fee of 1.5% of the hotels’ gross revenues. The deal also gives MHI a first right of offer to any investment within the joint venture.