Noble acquires 3 hotels in Indianapolis suburb

FISHERS, Indiana — Atlanta-based Noble Investment Group has acquired three properties in the Indianapolis, Indiana, area from an undisclosed buyer for an undisclosed amount.

The newly built hotels are located within the Fishers District, a 150-acre mixed-use development in the Indianapolis suburb of Fishers. The hotels are the Courtyard by Marriott Indianapolis | Fishers and the dual-brand Hyatt House & Hyatt Place Indianapolis | Fishers.

“Noble is excited to add these new, high-yielding hotels with in-place cash flows to our growing portfolio and capitalize on the region’s continued economic expansion,” said Ben Brunt, managing principal and chief investment officer for Noble.

In August, Noble, through an affiliate called NF V Jax Beach LLC, acquired the 150-key Courtyard by Marriott Jacksonville Beach Oceanfront from State College, Pennsylvania-based Shaner Hotel Group for $26.09 million, according to the Jacksonville Daily Record.

According to the story, Noble took out a $30.14 million loan from Wells Fargo Bank. The hotel, which was built in 1968, is scheduled for renovation starting in the second half of 2025. Noble also owns the Hilton Garden Inn Jacksonville Ponte Vedra Sawgrass in the market.

In January, Noble closed its largest real estate fund ($1 billion from 25 investors, pension funds, endowments, foundations, insurance companies and wealth management funds), including $150 million from Bethesda, Maryland-based Host Hotels & Resorts. The company said the fund would focus on select-service and extended-stay hotels in the Sun Belt and capitalize on distressed assets with impending debt.  

Mit Shah interview

Earlier this month, Hotel Investment Today Editor-in-Chief Jeffrey Weinstein interviewed Noble CEO Mit Shah on several topics, including what he sees in the deal-making space over the next 6 to 12 months.

“We’ve been quite active ourselves. We bought 50 hotels, $2.5 billion of assets over the last two years,” he said. “If you just think about what interest rates could look like 18 months from now, and all-in cost of borrowing for hotels circa 6% — again, not just my prognostication. If you look at the forward SOFER curve and you kind of look at where spreads could be at, that makes sense.

“So, if you’re selling hotels at 7.5 caps, you’re being able to manufacture a double-digit cash-on-cash return. The world needs an 8% return… Now, of course, everybody wants as much as they possibly can without taking a whole lot of risk. That’s me personally and the world as well. But you know there’s a magic to that 8%. And so, hotels being able to trade in that level against that cap rate should spur a significant amount of transaction opportunity.”