MCR Development Acquires National Marriott, Hilton Hotel Portfolio for $206M
NEW YORK AND DALLAS — MCR Development LLC, the seventh-largest hotel owner/operator in the United States, has acquired a portfolio of 18 Marriott and Hilton hotels for approximately $206 million. Collectively, the portfolio spans 1,787 rooms across 11 states in cities including Charlotte, N.C.; Savannah, Ga.; Cincinnati; Tulsa, Okla.; and San Antonio. The properties in the portfolio have an average age of less than 10 years and are unencumbered by management agreements.
“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,” says 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.”
MCR will own and manage the portfolio. The properties will continue to operate under their respective Marriott or Hilton brand affiliations, with long-term franchise agreements in place. The portfolio comprises multiple brands, including Marriott’s Courtyard and TownePlace Suites and Hilton’s Hampton Inn & Suites, Hilton Garden Inn and Homewood Suites.
This acquisition brings MCR’s portfolio to 88 hotels with approximately 10,000 rooms in 23 states. MCR’s hotels are operated under 10 brands and the firm is headquartered in New York City and Dallas.
— John Nelson