Industry Update
Press Release 4 June 2018

MCR closes $300 million hospitality fund

MCR Hospitality Fund LP has acquired 11 hotels representing $160 million in transaction volume with an additional five hotels in the pipeline

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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

4th-largest hotel owner-operator in the United States
$4.0 billion portfolio of 140 premium-branded hotels
MCR operates 8 Marriott brands, 6 Hilton brands and a number of unflagged independent hotels

  • 20,000 guestrooms across 37 states and 100 cities
  • Founded in 2006
  • Offices in New York City, Dallas, Chicago and Richmond, Virginia
  • 4,000 team members across the country
  • Three-time recipient of the Marriott Partnership Circle Award, the highest honor Marriott presents to its owner and franchise partners
  • Recipient of the Hilton Legacy Award for Top Performer
  • 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
  • Named one of Fast Company"s 10 Most Innovative Travel Companies of 2020
  • For more information, please visit
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