MCR, the seventh largest hotel owner-operator in the United States, today announced the successful closing of its fund, MCR Hospitality Fund LP. The Fund's capital commitments total $300 million, providing MCR with approximately $1 billion in purchasing capacity. The MCR Hospitality Fund LP targets investments in institutional-quality Marriott and Hilton select service and extended stay hotels throughout the country.

"This important milestone reflects the success our operations team has had in creating value through better management," said Tyler Morse, Chief Executive Officer and Managing Partner of MCR. "By investing strategically and being disciplined in our approach to capital allocation, we have continued to produce strong investor returns. We expect to build upon this success by using the proceeds we raised to acquire additional properties at favorable terms and applying our operating and management platform to unlock significant yield potential."

Since August 2017 the MCR Hospitality Fund LP has acquired 11 hotels (1,272 rooms), comprising $160 million in total transaction volume and $62 million in total equity (20% of the Fund's total capital commitments). The 11 properties include four Marriott hotels (496 rooms) and seven Hilton hotels (776 rooms) and represent an average purchase price of $126,000 per room, 20% below replacement cost. The acquired hotels are located within strong business and leisure markets, including:

  • Chicago, Illinois
  • Salt Lake City, Utah
  • Cincinnati, Ohio
  • Milwaukee, Wisconsin
  • Richmond, Virginia
  • Providence, Rhode Island
  • Champaign, Illinois
  • Allentown, Pennsylvania

On track to acquire 25 hotels by the end of 2018, the Fund has five hotels (550 rooms) in the pipeline that are expected to close by the end of August 2018.

The MCR Hospitality Fund LP comprises a diverse mix of investors including endowments, foundations, charitable trusts, high net worth individuals and principals of MCR. Mr. Morse, along with Chris Korinek, Senior Vice President, Operations, Kym Janney, Chief Financial Officer, and Russ Shattan, Senior Vice President, Acquisitions & Development, will oversee the Fund's management.

About MCR

MCR is the 3rd-largest hotel owner-operator in the United States with a $5.0 billion portfolio of 150 premium-branded hotels containing more than 25,000 guestrooms. Founded in 2006 by Tyler Morse, MCR has 7,000 team members across the country and operates independent hotels as well as 9 Marriott and 8 Hilton hotel brands. MCR has been named one of Fast Company's Most Innovative Travel Companies. For the TWA Hotel at New York's JFK Airport, MCR won the Development of the Year (Full Service) Award at The Americas Lodging Investment Summit (ALIS), the Urban Land Institute New York Excellence in Hotel Development Award and the American Institute of Architects national Architecture Award, the highest honor given by the AIA. For more information, please visit