Lodging Fund REIT III Sells Two Hotel Properties for $27.2 Million
Legendary Capital, a hotel asset investment management firm, announced the sale of the Hampton Inn in Fargo, N.D., and the Home2 Suites by Hilton in Prattville, Ala. Both properties were part of Lodging Fund REIT III Inc., a publicly registered, non-traded real estate investment trust managed by Legendary Capital.
The Hampton Inn Fargo sold for $10.5 million on Dec. 17, 2025. Originally purchased in 2022 for approximately $11.4 million, not including transaction costs, the acquisition was structured through the firm’s equity preservation UPREIT, which involved the former ownership contributing the property in exchange for partnership units in the REIT’s operating partnership. Built in 2011, the 90-room property is located near the Sanford Medical Center, one of the largest medical hubs in the region.
The Home2 Suites by Hilton Prattville, acquired in 2019, sold for $16.7 million on Dec. 30, 2025. Originally, an affiliate of Lodging Fund REIT III OP, LP – the operating partnership for the REIT – entered into a sale and $14.75 million purchase agreement for the Alabama property in May 2019. That purchase price also did not include transaction costs. Built in 2016 with 90 rooms, the hotel is positioned just north of Montgomery in a high-traffic retail corridor with convenient interstate access. Prattville is part of a growing submarket that continues to see healthy demand from military, state government, and regional travel.
“Fargo and Prattville have been strong performers, with the Hampton Inn significantly outperforming our NOI targets and the Home2 Suites maintaining consistent stability through shifting market cycles,” said Alec Worwa, senior vice president at Legendary Capital.
The REIT was launched in 2018 with a focus on acquiring a diversified portfolio of limited-service and extended-stay hotels. In May 2024, the fund’s board approved a plan to explore the sale of its 19-hotel portfolio.
“Despite our continued belief in these submarkets, we saw an opportunity to exit at an attractive valuation. Selling now allows us to lock in gains and avoid significant future capital requirements, ultimately delivering a strong result for our shareholders,” added Worwa.
Headquartered in Fargo and through its affiliated entities, Legendary Capital has acquired more than 35 hotels in its portfolio, primarily targeting 80-to-200 room limited-service, select-service, full-service and extended-stay hotels in America’s heartland.
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