Yard by Marriott Wall at Monmouth Shores Corporate Park, Wall Town, NJ MCR finished the sale of 18 Marriott and Hilton possessions to American Hotel Income Residence REIT LP (TSX: HOT.UN) (TSX: HOT.DB.U) (OTCQX: AHOTF)for$407.4 million ($186,283/ room).
The sale incorporated 2,187 spaces. The assets offered are in Maryland, New Jersey, New york city, Connecticut and Pennsylvania.
The Eastern Coast portfolio includes 10 Marriott branded hotels amounting to 1,206 guestrooms (5 House Inns, 2 SpringHill Suites, one Courtyard, one Fairfield Inn and Suites and one TownePlace Suites) and 8 Hilton branded hotels totaling 981 guestrooms (4 Homewood Suites, 2 Hampton Inns and two Hilton Garden Inns).
The average age of the hotels is 10 years and each hotel has actually either been recently built or renovated.
The typical capitalization rate of the portfolio personality was 7.9% on a routing 12 months net operating income basis, or approximately $186,000 per space.
“The sale of this portfolio is a reflection of MCR’s investment thesis: to buy superior branded select service and extended stay hotels, enhance operations, and offer opportunistically,” said Tyler Morse, CEO and handling partner of New York-based MCR.
Rob O’Neill, CEO of Vancouver, BC-based American Hotel Income Properties, said, “During the first half of 2017, we have been disciplined in our financial investment strategy to acquire premium branded, select-service hotels with supported in-place income, which are younger and well-maintained and where acquisition costs are listed below replacement cost.
AHIP has actually now acquired 23 hotels in the first 6 months of 2017 for approximately $589 million. Other markets it has actually finished purchases in are: Ohio, Texas, and Arizona.