Dublin investment group Sorrento Structuring has made its first significant acquisition with a $41 million (€31.7 million) deal to buy US group BridgeStreet Worldwide.
BridgeStreet, which employs around 350 people, is part of the listed US hospitality group Interstate Hotels and Resorts, which operates 223 hotels across the US, Canada and Russia.
BridgeStreet provides furnished apartments and houses for business travellers and corporate executives who are relocating. It has around 10,000 properties in more than 100 cities worldwide.
Bryan Turley, Sorrento's chief executive, said the Irish group had developed a strong working relationship with BridgeStreet.
"The acquisition will effectively open up new markets and enable us to increase our ability to acquire residential blocks worldwide. One of Sorrento's key criteria has been to offer our clients a commercial lease on residential properties and this deal will allow us to continue to do this into the future."
Sorrento Structuring was established last year by Mr Turley and two other founding directors of Sorrento Asset Management - Darina Heavey and John Ryan.
The three - all former Anglo Irish Bank executives - have experience with a range of companies in the Irish financial services and stockbroking sectors.
Sorrento Structuring is a subsidiary of Sorrento Asset Management, a company they formed with fellow director Craig Molloy in late 2004. The group specialises in structuring "high-quality off-market residential and commercial property transactions with guaranteed yields and full management packages".
Sorrento has been involved in putting together a series of portfolios for syndicates of private investors to fund an ambitious €350 million UK expansion by the Prem Hotel management group.
BridgeStreet has concentrated recently on expanding its presence in Europe, although it has not, until now, had a presence in Ireland. Chief executive Lee Curtis last night described the deal as "an exciting partnership" that "will undoubtedly open doors for both organisations".
BridgeStreet's management will remain in position following the takeover.
Cantor Fitzgerald, DLA Piper USA, Mason Hayes & Curran and Goodbody Corporate Finance were advisers on the deal, with funding arrangement by Credit Suisse.
