January 26, 2015
MCR Development LLC (“MCR”), the seventh largest hotel owner-operator in the United States, today provided an overview of its key business activities in 2014.
“2014 was another exciting year for MCR,” stated Tyler Morse, Chief Executive Officer. “We continued to grow our portfolio through several separate portfolio acquisitions and strengthened our current asset base through a comprehensive renovation program.”
On the topic of future plans for MCR, Mr. Morse stated, “We will continue to seek yield through selective acquisition opportunities of hotels in the Marriott and Hilton brand families, which have consistently delivered to us superior returns and industry-leading guest recognition. We are thrilled to continue to grow our business with the support we receive as a trusted and valued partner of both companies.”
Acquisition Activity
MCR acquired 12 premium-branded Marriott and Hilton, select-service hotels in 2014. As of December 31, 2014, MCR managed a portfolio of 70 hotels consisting of 8,300 rooms across 17 states, including 10 premium brands.
In addition, MCR has signed a purchase agreement to acquire an additional 19 Marriott and Hilton branded properties consisting of approximately 2,000 rooms in 11 states. The transaction is expected to close in Q1 2015 and will further grow MCR’s portfolio to 89 hotels consisting of 10,000 rooms across 23 states.
Below is a summary of MCR’s recent acquisition activity:
Market # of Hotels/Rooms Hotel Brands Status
Ohio 4-Hotels / 406 Rooms Marriott and Hilton Purchased 2014
Phoenix, AZ 2-Hotels / 246 Rooms Hilton Purchased 2014
Virginia 6-Hotels / 848 Rooms Marriott and Hilton Purchased 2014
Various (11 States) 19-Hotels / 2,000 Rooms Marriott and Hilton Under Contract; Q1 2015 Closing
Total: 31-Hotels / 3,500 Rooms
“These assets are high-quality additions to our growing portfolio, and are consistent with MCR’s strategy of acquiring hotels with significant operational upside situated in strong corporate, government, education, and/or military driven markets,” Morse continued. “Our acquisition activity over the past year reflects the depth of our industry relationships and our ability to consistently source investment opportunities that meet MCR’s strict underwriting criteria.”
Renovation Activity
In 2014, MCR completed comprehensive renovations at 22 of its hotel properties. The renovations, which were executed to enhance overall guest experience and drive RevPAR growth, featured enhancements to the hotels’ lobbies, guest rooms, and common areas.
MCR also announced it has launched new renovation projects at six hotels, to be completed by the second quarter of 2015. “Our ongoing renovation program focuses on enhancing the overall guest experience, providing our guests with a product that emphasizes quality and maximizes comfort,” Morse added.