McNeill Hotel Investors entered into an agreement with an investment fund managed by Almanac Realty Investors, under which the fund has committed to provide up to $150 million of capital to McNeill. It is expected that the investment will allow McNeill to double the size of its portfolio through the acquisition, development and management of select-service hotels using branded flags from the major domestic franchisors located in secondary and select tertiary markets across the United States.
“We are excited to establish this relationship with Almanac, one that is based on our shared corporate values and investment strategies,” said Phillip McNeill Jr., CEO of McNeill. “In particular, we respect Almanac’s understanding of hotel industry fundamentals and the due diligence with which they make investments in real estate companies.”
Based in New York, Almanac is a leading provider of growth capital to private and public real estate companies. Founded in 1981, originally under the name Rothschild Realty, the group has committed more than $5 billion to 42 companies pursuing a wide array of real estate opportunities. Almanac’s investment in McNeill is the first out of its most recent fund, Almanac Realty Securities VIII, L.P.
Justin Hakimian, a partner at Almanac, added, “McNeill is a strong vertically integrated company comprised of seasoned hospitality and real estate professionals. With a leadership team well-versed in building and operating hotel portfolios, we look forward to being part of their continued growth in the years ahead.”
McNeill Hotel Company, a nationally recognized hotel owner, developer, and manager, received the 2017 “Guest Satisfaction Excellence Award – TownePlace Suites Brand” at the recent Marriott Connect 2017 Select Brands Owners Conference and also received the Fairfield Inn & Suites (Marriott) Bruce Reed Rally to Serve Award for community service.
“Our relationship with Almanac will allow us to accelerate our existing strategy of strategic investments in quality select-service hotel properties in markets with excellent long term demand drivers such as universities, regional hospitals or drive-to destinations. Our growth will allow us to offer meaningful career growth opportunities for our valued staff and enhance our industry mission of People Serving People,” added McNeill.