Corcoran says a Formula Blue property improvement plan will be done at a hotel closing in August.

DALLAS—With a focus on the acquisition of branded premium select service hotels, TCOR Hotel Partners and TriGate Capital LLC have formed an equity joint venture for $30 million. TCOR and TriGate signed a definitive agreement for its first acquisition expected to close in late August.“We will be doing a complete Formula Blue property improvement plan at the hotel expected to close at the end of August,” Thomas J. Corcoran Jr., CEO/president of TCOR and former founder/chairman of FelCor Lodging Trust, tells GlobeSt.com. “We have not identified any other hotels at this time and therefore will not know the scope of the renovations until they have been identified.”TCOR will create value at the hotels by implementing property improvement plans, asset managing operating performance and engaging third-party management companies.“We are excited about working with TriGate and with leverage, we expect to purchase five to six hotels,” said Corcoran.TCOR is a hotel acquisition platform designed to drive value and returns for its investors. The focus of TCOR is on opportunities that provide immediate yield at deal execution, upside operational/management reposition, value-to-replacement cost and post-acquisition capital improvements and repositioning opportunities for yield benefit. TCOR will focus primarily on the branded premium select service and extended-stay segments of the hotel space in primary and secondary markets which demonstrate positive demand factors.“Together, we expect to access interesting value-add investment opportunities in the select service hotel sector,” said Jeff Yarckin, president and COO of TriGate.TriGate is a discretionary real estate fund founded in 2007 that has purchased more than 12 million square feet of commercial properties during that time and currently has approximately $1.3 billion of assets under management. It is investing a $340 million equity fund–TriGate Property Partners III LP–across all commercial asset sectors with a significant amount of capital available for new investment.Holliday Fenoglio Fowler LP assisted in the arrangement of the joint venture between TCOR and TriGate.