American Hotel Income Properties REIT LP has completed the acquisition of a portfolio of 18 Marriott and Hilton hotels containing 2,187 guestrooms and located in Maryland, New Jersey, New York, Connecticut and Pennsylvania for $407.4 million.
The average age of the hotels is 10 years and each hotel has been recently built or renovated.
“During the first half of 2017, we have been disciplined in our investment strategy to acquire premium branded, select-service hotels with stabilized in-place income, which are younger and well-maintained and where acquisition costs are below replacement cost,” said Rob O’Neill, CEO of AHIP.
The hotels were acquired for approximately $186,000 per guestroom. AHIP funded the purchase price with cash on hand and with the proceeds from four new commercial mortgage backed securities loans worth $236.2 million
AHIP’s portfolio now consists of 113 hotels totaling 11,570 guestrooms.
MCR, the seventh largest hotel owner-operator in the United States, was the seller.