Acquisition activity has gained momentum in recent weeks as many owners and operators look to try and expand their portfolios confident that the U.S. lodging industry has stabilized and is poised for a significant recovery. In addition, owners continue to re-evaluate management companies as they look for the best return on investment.
MCR—which has been an active acquirer since its formation in 2006 and is now the fourth largest owner/operator in the U.S. with a portfolio of roughly 110 hotels—just purchased five Marriott and Hilton hotels in Texas and Washington for $94 million.
Totaling 674 rooms, the five hotels are situated in some of the highest growing metropolitan regions in the U.S., including the aerospace hub of Renton, WA, Dallas’ Telecom Corridor and Houston’s Energy Corridor, according to the company.
Located directly across from Boeing’s Renton airplane assembly plant, where 737 jets are manufactured, the 146-room Residence Inn by Marriott Seattle South/Renton is close to downtown Seattle, Seattle-Tacoma International Airport and King County International Airport-Boeing Field.
In the Telecom Corridor, a 6.5-mile business strip on Route 75 in Richardson, TX, the 132-room Courtyard by Marriott Dallas Plano/Richardson and the 129-suite Residence Inn by Marriott Dallas Plano/Richardson are across from State Farm Insurance’s corporate campus at the 186-acre mixed-use development CityLine. The hotels are also within minutes of Blue Cross Blue Shield’s headquarters, AT&T, Verizon and 6,000 other companies.
On Interstate 10, near downtown Houston in the city’s Energy Corridor, the 132-room Courtyard by Marriott Houston I-10 West/Park Row and the 135-room Hampton Inn & Suites by Hilton Houston I-10 West/Park Row are near the headquarters of more than 300 companies, including the Wood Group and BP America.
Meanwhile, San Diego-based Azul Hospitality Group—which has a portfolio of 42 hotels under contract—has been tapped by Seaview Investors, LLC, to manage its portfolio of eight California hotels.
The eight-property 1,403-room portfolio includes:
- AC Hotel by Marriott Beverly Hills in Los Angeles
- Courtyard by Marriott Los Angeles LAX/Century Boulevard
- Embassy Suites by Hilton LAX North in Los Angeles
- H Hotel Los Angeles, Curio Collection by Hilton
- Homewood Suites by Hilton Los Angeles International Airport
- Hotel Trio in Healdsburg
- Residence Inn by Marriott Beverly Hills in Los Angeles
- Residence Inn by Marriott Los Angeles at LAX
“Azul’s success is due in large part to our strategic partnerships,” said Rick Mansur, president/CEO, Azul Hospitality Group, in a statement. “We are honored to have a leading investor like Seaview as a partner. With the improving industry conditions, along with our ability to drive efficient and innovative hospitality operations, we are confident that we will maximize their investment returns.”