Real Capital Solutions and Prism Hotels move to partner in a $200M investment fund initiative
Dallas-based Prism Hotels and Resorts announced they have partnered with Louisville, Colorado-based Real Capital Solutions in a $200 million investment fund initiative where Real Capital Solutions is poised to purchase hotels located in the Permian Basin in Texas, as well as other oil & gas demand-driven markets. Marcel Arsenault, Chairman and CEO of Real Capital Solutions and Prism Hotels and Resorts’ President and CEO Steve Van jointly made the announcement.
“Prism’s team of highly knowledgeable hotel experts—and their deep understanding of the Texas market—made strategic sense to partner with as we launch this initiative,” said Arsenault. “Their hotel expertise and relationships nationally and in Texas coupled with our innovative investment strategy is sure to make for a meaningful association as we pursue this critical region ripe with possibilities.”
This opportunistic fund is the marrying of Real Capital Solutions’ macro oil prediction and financial resources and Prism’s expertise in managing successful hotel operations. Arsenault, (who initially made his wealth during the savings & loan crisis) believes the time for investment is right due to the current state of the hotel industry and the timely opportunity to secure great properties with a bright future ahead. Arsenault and other experts believe that the price of oil will recover within the next two years to $60-65/bbl. “We believe hotel fundamentals will improve when drilling recovers,” he observed.
“Working hand-in-hand with Marcel and his outstanding team at Real Capital Solutions will create an unmatched chance for Prism to provide RCS with hotel industry and geographic market intelligence,” Van said. “The Permian Basin is the richest area of oil and gas in the United States with a vast established infrastructure. Marcel has a way of fundamentally understanding timing and market conditions and as we watch this area continue to evolve for the better, now is the perfect time for action.”
Arsenault is one of the largest and most active private owners of commercial real estate in the United States. In 2005, he authored an internal paper titled “Housing Causes Hard Landing”, predicting the housing crash and subsequent problems in the financial industry.