NEW YORK CITY—MCR reports it has sold 18 Marriott and Hilton hotels in Maryland, New Jersey, New York, Connecticut and Pennsylvania.
Earlier this month, Globest.com reported that American Hotel Income Properties of Vancouver, British Columbia had acquired those hotels, but at the time the seller was not identified. The deal, valued at $407.4 million, closed later in the month (June 22) and involved a total of 2,187 rooms.
MCR, headquartered in New York City, announced its sale of the properties today. The average capitalization rate of the portfolio disposition was approximately 7.9% on a trailing 12-month net operating income basis, or approximately $186,000 per room.
“The sale of this portfolio is a reflection of MCR’s investment thesis: to purchase premium branded select service and extended stay hotels, improve operations, and sell opportunistically,” says Tyler Morse, CEO and managing partner of MCR. “The strong returns generated by this disposition are a testament to the performance of our industry-leading brand partners, Marriott and Hilton, and to the strength of MCR’s hotel operations team.”
The sale consists of 10 Marriott branded hotels totaling 1,206 guest rooms (five Residence Inns, two SpringHill Suites, one Courtyard, one Fairfield Inn and Suites and one TownePlace Suites) and eight Hilton branded hotels totaling 981 guest rooms (four Homewood Suites, two Hampton Inns and two Hilton Garden Inns).
The deal involves a number of hotel properties in the New York metro area including one in New York State (SpringHill Suites Long Island in Bellport) and six hotels in New Jersey (Homewood Suites Dover Rockaway, Dover, NJ; Homewood Suites Atlantic City Egg Harbour, Egg Harbour Township, NJ; Residence Inn Atlantic City Egg Harbour, Egg Harbour Township, NJ; Residence Inn Mount Laurel at Bishop’s Gate, Mount Laurel, NJ; Residence Inn Neptune at Gateway Centre, Neptune City, NJ and the Courtyard Wall at Monmouth Shores Corporate Park, Wall Township, NJ). The deal also includes one hotel in Connecticut—the Hilton Garden Inn in Milford, CT.
American Hotel Income Properties also picked up two Pennsylvania hotels—Homewood Suites in Allentown, PA and the Homewood Suites in Bethlehem, PA.
A majority of the portfolio involves eight properties in the State of Maryland, including four hotels in the City of Baltimore: Hampton Inn Baltimore/White Marsh; Hilton Garden Inn Baltimore/White Marsh; Fairfield Inn & Suites Baltimore/White Marsh and the Residence Inn Baltimore/White Marsh. The deal also includes four in Hanover, MD: Hampton Inn & Suites Baltimore/Arundel Mills/BWI Airport; Residence Inn Baltimore/Arundel Mills/BWI Airport; SpringHill Suites Baltimore/Arundel Mills/BWI Airport and the Towne Place Suites Baltimore/Arundel Mills/BWI Airport.
According to information provided by American Hotel Income properties, the portfolio had an occupancy rate of 84.8% last year, achieved an annual daily room rate of $125.07 per room and RevPar of $106.09 in 2016.
MCR is the seventh largest hotel owner-operator in the country and has invested in 92 hotel properties with more than 9,800 rooms in 23 states. MCR’s hotels are operated under 10 brands. The firm has offices in New York City and Dallas.
With the closing of the MCR hotel portfolio transaction, AHIP’s portfolio now totals 113 hotels totaling 11,570 guest rooms, with 67 premium branded, select-service hotels totaling 7,684 guest rooms and 46 rail crew hotels totaling 3,886 guest rooms.