MCR Concludes Record 24-Month Period with $2 Billion in Real Estate Investments | Your money
NEW YORK–(BUSINESS WIRE)–June 6, 2022–
MCR – the 4th largest hotel owner-operator in the nation – has made $2 billion in investments and deployed more than $500 million in equity since 2020. In the past 24 months, the company has acquired 46 selected-service hotels, five full-service hotels, four non-performing loans and two hotel-related software companies. These acquisitions bring the company’s portfolio to 145 hotels and nearly 25,000 rooms in 102 cities.
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Sheraton New York (Photo: Business Wire)
MCR completed 26 transactions during the COVID-19 pandemic. The team got creative with new investment structures and found opportunities in new asset classes, including buying:
- Hotels direct from developers and owner-operators with limited due diligence
- Hotels owned by Special Service Estate Agents
- Hotels emerging from bankruptcy
- Undervalued Publicly Traded Equity Securities
- Non-performing loans
- Hotels via public auction on the steps of City Hall
- Hospitality-related software companies such as StayNTouch and Optii
MCR’s size and scale allowed it to act quickly. For example, MCR closed the 197-key Staybridge Suites Palm Springs in 14 days and the former Constance Pasadena Hotel in 30 days.
With properties in 37 states, MCR’s investments have focused on high-growth markets like Charlotte, Nashville, Phoenix, Naples and Dallas and inner city cities like New York, Houston and Minneapolis. Among the Manhattan acquisitions: the 1,780-room Sheraton New York, the 168-room Royalton New York and the 725-room The Lexington Hotel, Autograph Collection.
MCR leveraged its team of 6,000 operations professionals to expand its third-party management business to 20 properties. The company’s in-house creative team, which oversees the design and marketing of all of MCR’s bespoke hotels, has rebranded four independent hotels in the last 24 months, including strategic brand conversions such as the former Killington Mountain Lodge of 102 independent keys in Hilton. Tapestry Collection Property.
MCR has made seven investments in the past 24 months, resulting in an internal rate of return (IRR) of between 30% and 330%. As the travel industry recovers from the pandemic, MCR plans to continue its accelerated transaction business with five assets under construction, several additional software acquisitions, and $1.8 billion of adaptive reuse development projects underway.
About the RCM
- 4th largest owner-operator of hotels in the USA
- $4.0 billion portfolio of 145 premium brand hotels
- MCR operates 9 Marriott brands, 8 Hilton brands and a number of independent unflagged hotels
- 25,000 rooms in 37 states and 102 cities
- Founded in 2006
- Offices in New York, Dallas, Chicago and Richmond, Virginia
- 6,000 team members across the country
- Three-time recipient of the Marriott Partnership Circle Awardthe highest honor Marriott presents to its owner and franchise partners
- Beneficiary of the Hilton Legacy Award for Best Performer
- For the TWA hotel at JFK airport in New York, MCR won the Development of the Year Award (Full Service) 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 businessThe 10 most innovative travel companies of 2020
- For more information, visit mcrhotels.com
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CONTACT: [email protected]
KEYWORD: NEW YORK UNITED STATES NORTH AMERICA
KEYWORD INDUSTRY: OTHER TRAVEL COMMERCIAL BUILDING AND REAL ESTATE HOLIDAYS ACCOMMODATION CONSTRUCTION AND REAL ESTATE DESTINATIONS TRAVEL
Copyright BusinessWire 2022.
PUBLISHED: 06/06/2022 09:00/DISC: 06/06/2022 09:03
Copyright BusinessWire 2022.