MCR Development buys 18-hotel portfolio
10 MARCH 2015 6:21 AM
MCR Development acquired a portfolio of 18 Marriott- and Hilton-branded hotels for approximately $206 million.
NEW YORK--MCR Development LLC (“MCR”), the seventh largest hotel owner-operator in the United States, today announced it has acquired a portfolio of 18 Marriott and Hilton hotels (the “Portfolio”) for approximately $206 million. Collectively, the Portfolio represents 1,787 rooms across 11 states in growing cities including Charlotte, Savannah, Cincinnati, Tulsa and San Antonio. The Portfolio has an average age of less than 10 years and is unencumbered by management agreements. All hotels were acquired with fee simple title.
This collection of premium-branded hotels further enhances the geographic diversity of MCR’s portfolio and expands its presence in high-growth markets with strong underlying fundamentals. Each hotel is also located in proximity to its respective market’s core businesses, attractions and airports. MCR will own and manage the Portfolio, which will continue to operate under its respective Marriott or Hilton brand affiliations, with long-term franchise agreements in place. The Portfolio includes multiple brands including Marriott’s Courtyard and TownePlace Suites and Hilton’s Hampton Inn & Suites, Hilton Garden Inn and Homewood Suites.
“This acquisition significantly enhances the size and scale of our premium branded select service hotel portfolio in the United States. Adding this collection of high-quality assets further strengthens our relationship with Marriott and Hilton as our portfolio will now include 50 Marriott and 31 Hilton hotels,” stated Tyler Morse, Chief Executive Office and Managing Partner of MCR Development. “This investment meets our strict underwriting criteria of selectively acquiring, high-yielding premium-branded hotels in high-growth business and leisure markets with multiple demand generators. Given the properties’ attractive locations and unencumbered management agreements, the hotels are well positioned to deliver strong returns.”
This acquisition brings MCR’s portfolio to 88 hotels with approximately 10,000 rooms in 23 states.