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
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.
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.
MCR is the seventh largest hotel owner-operator in the country and owns a portfolio of 82 premium hotel properties with over 9,800 keys in 21 states. MCR’s hotels are operated under 10 brands and the firm is headquartered in New York City and Dallas. In 2015, MCR was awarded the Marriott Partnership Circle Award, the highest honor Marriott presents to its owner and franchise partners for hospitality excellence. For more information, please visit:www.mcrdevelopment.com.