MCR Development Acquires 18-Hotel Portfolio for $206M

NEW YORK—MCR Development LLC has acquired a portfolio of 18 Marriott and Hilton hotels for approximately $206 million.
 
The portfolio represents 1,787 rooms across 11 states in growing cities including Charlotte, NC; Savannah, GA; Cincinnati; Tulsa, OK; and San Antonio. It has an average age of less than 10 years and is unencumbered by management agreements. All hotels were acquired with fee simple title.
 
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 has 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 U.S. 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, CEO 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.”