June 29, 2017
MCR, the seventh largest hotel owner-operator in the United States has sold 18 Marriott and Hilton assets to American Hotel Income Properties REIT LP (“AHIP”) 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% on a trailing twelve 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,” said Tyler Morse, Chief Executive Officer 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.”