MCR has closed its $300m MCR Hospitality Fund LP. The firm intends to use the funding to target investments at its 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). The 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 percent below replacement costs. MCR has plans to acquire 25 hotels by the end of 2018, with five hotels (550 rooms) in the pipeline that are expected to close by the end of August. MCR is the seventh largest hotel owner-operator in the United States with 94 premium-branded hotels totaling 11,200 rooms across 24 states and 67 cities.
“This important milestone reflects the success our operations team has had in creating value through better management,” said Tyler Morse, CEO and managing partner at 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.”
