The 100-room Residence Inn by Marriott Tampa Suncoast Parkway at NorthPointe Village was the largest of three Tampa Bay, Florida, deals struck by MIG Real Estate.
NEWPORT BEACH, California—When it comes to hotel investments, MIG Real Estate is after long-term growth. And as far as MIG Real Estate is concerned, such growth comes in abundance in the U.S. Western and Sun Belt markets.
MIG Real Estate is fresh off the acquisition of three properties in Tampa Bay, Florida, bumping its portfolio up to eight hotels comprising 960 rooms. The properties acquired in the Tampa Bay market include:
Courtyard Tampa Oldsmar (99 rooms);
Residence Inn Tampa Downtown (78 rooms); and
Residence Inn Tampa Suncoast Parkway at NorthPointe Village (100 rooms).
“We’re really excited about the Southeast portion of the country … For us, we’re always focused on looking for long-term growth, and we believe in the long-term growth we found in Florida,” said Greg Merage, founder and CEO of MIG Real Estate.
Markets west of the Rockies also are showing up on the company’s radar, he said, as the company has a presence in Jackson Hole, Wyoming, Denver and Phoenix.
“We’re picking up the pace of acquisitions,” he said.
As evidenced by the company’s deals in Tampa Bay, MIG Real Estate’s team is after select-service hotels under major brands. The company seeks to own the properties but uses third-party operators.
MIG Real Estate, an all-cash acquirer of hotels, is also interested in conversion opportunities and situations where the company can add value. For instance, the Hotel Highland in Phoenix, which was the company’s first acquisition in March 2010, was converted to a Hampton Inn this year.
The company owns and operates across all asset classes is an affiliate of MIG Capital, which was founded in 2002 by Paul, Richard and Greg Merage. Paul and David Merage established Chef America in 1975, which is best known for its Hot Pockets and Lean Pockets brand of microwaveable food.
Merage said the hotel investment scene is heating up.
“There’s a lot of capital chasing deals pretty aggressively,” he said.
As for MIG Real Estate’s outlook, the company has three potential deals in its pipeline. “I’m confident they’ll close by year end,” Merage said.
Still, the company does not have a specific number of hotels it is looking to acquire. A total of $600 million has been earmarked for acquisitions across all asset classes, but Merage said the company does not have a specific figure as to how much of that will be dedicated to hotels.
“If we can find great opportunities, we’re cash-rich and able to acquire,” he said.