Germantown, Tenn.-based McNeill Investment Group, formerly McNeill Hotel Investors, has formed a strategic partnership with national private equity real estate investor Prospect Ridge and Fulcrum Hospitality—a hospitality investment operating partner, advisor and asset manager.
McNeill contributed 12 of its wholly owned, newer vintage, premium-branded, select-service and extended-stay hotels focused in university and medical center submarkets to the new partnership. McNeill retains property management responsibility of all hotels controlled by the new partnership and is expected to continue to grow its portfolio of owned and third-party managed hotels, including in its current emphasis on Hilton, Marriott and Hyatt-branded select-service and extended-stay properties nationwide.
Property management assignments will continue to be organized under McNeill Hotel Co., with the Prospect Ridge joint venture and McNeill Hotel Co. units of newly formed McNeill Investment Group. McNeill also has concluded its investment and property management relationship with Almanac Realty Investors, a business unit of Neuberger Berman, a private, independent and employee-owned investment manager.
“This is a landmark day in the history of our company,” McNeill Investment Group Executive Chairman Phillip McNeill, Jr. said in a statement. “I first want to thank Almanac Realty Investors for an outstanding partnership during a period of robust growth and meaningful positive performance for us, including through the pandemic. When Mark Ricketts and I began McNeill Hotel Company, one of our original goals was to create a company that would be attractive to institutional investors. Almanac was instrumental in helping us to achieve that goal.
“We are excited about our new venture with Prospect Ridge,” McNeill continued. “We know it will be a great fit with respect to investment philosophies and objectives, as well as how we regard our other industry partners, our team members, our guests and our host communities. We look forward to continuing to drive success and grow our best-in-class hotel management and development platform.”