BitNile Holdings’ subsidiary, Ault Alliance Inc., has acquired three hotels in Middleton, WI, a suburb of Madison, and one hotel in Rockford, IL through its subsidiary Ault Global Real Estate Equities Inc. (AGREE). The acquisition comprises a total of 526 rooms and comprises two Marriott hotels (a Courtyard by Marriott and a Residence Inn by Marriott) and two Hilton Garden Inn hotels.

Ault Alliance formed AGREE in early 2021 to invest in commercial real estate, including hospitality and apartment buildings, with a focus on the mid-market.

This acquisition represents AGREE’s first commercial real estate investment consisting of the 136 room Courtyard Madison West / Middleton; the 133-room Hilton Garden Inn Madison West / Middleton and the 122-room Residence Inn Madison West / Middleton in Middleton, WI, and the 135-room Hilton Garden Inn Rockford in Rockford, IL.

BitNile paid $ 69 million for the hotels, of which $ 23.9 million was cash upon completion; the remaining purchase price was financed through building loan agreements. Over the next 18 months, AGREE plans to renovate the hotels as part of a $ 13.7 million real estate improvement plan. The hotels are run by GF Hotels & Resorts.

AGREE has partnered with Joshua Caspi of Caspi Development, a New York-based real estate developer who has experience in hospitality, office, and multi-family experience developments. BitNile had previously invested in the New York of the Hotel Barrière Le Fouquet in Manhattan together with Caspi Development.

“We are very excited to acquire this first-class, stabilized portfolio of assets in an attractive and growing region of the country, located in a state capital and anchored by a major state university, as our first acquisition through AGREE,” said Christopher Wu, President, Ault Alliance and CEO, AGREE. “We believe these assets will bring AGREE, and therefore BitNile, attractive returns and may serve as a model for other commercial real estate transactions. We are also excited to partner with Joshua Caspi, a real estate developer and investor with considerable expertise, to help us manage and grow our real estate portfolio. “

Milton “Todd” Ault III, Founder / CEO of BitNile, added, “Bringing a team like this together has been my vision for 20 years and I am excited and proud to say that we are making this a reality today. We have a team of professionals who run these four hotels and bring them to peak performance. We look forward to expanding our hotel portfolio. “

BitNile had previously announced a plan to split into two publicly traded companies by distributing the Ault Alliance’s equity to its shareholders. Following the spin-off of the Ault Alliance, BitNile, through its subsidiary BitNile Inc., will be a pure bitcoin mining and data center operations provider pursuing DeFi-related initiatives. The Ault Alliance will continue to focus on BitNile’s legacy businesses and the deals it has recently launched, including lending and investing in real estate and distressed assets.

The seller was a joint venture between the North Central Group (NCG) and Raymond Management Company (RMC).

Jeff Lenz, President / Chief Development Officer, NCG, said, “The sale of these four mature properties in our portfolio gives us additional capital and resources to develop and operate new and larger projects that we enjoy working on, The Trade Milwaukee, an Autograph Collection Hotel, in collaboration with the Milwaukee Bucks organization and the Moxy Madison Downtown, a Marriott Hotel. “