MCR, a hotel owner-operator in the United States, sold 18 Marriott and Hilton assets to American Hotel Income Properties REIT for $407.4 million. The assets sold are located in Maryland, New Jersey, New York, Connecticut and Pennsylvania. The transaction closed on June 22, 2017.
The average capitalization rate of the portfolio disposition was approximately 7.9 percent on a trailing 12 months net operating income basis, or roughly $186,000 per room. The sale encompassed 2,187 rooms.
"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,” Tyler Morse, CEO and managing partner of MCR, said in a release. “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.”
MCR is the seventh largest hotel owner-operator in the country and has invested in 92 hotel properties with over 9,800 rooms in 23 states. MCR’s hotels are operated under 10 brands. The firm has offices in New York City and Dallas. In 2015 MCR was awarded the Marriott Partnership Circle Award.