NEW YORK CITY-MCR Development LLC has acquired 10 hotels in theNortheast for approximately $164 million from the Briad LodgingGroup, which was represented by CB Richard Ellis. MCR acquired sixMarriott and four Hilton branded hotels located in New York, NewJersey, Connecticut and Pennsylvania. The brands include theResidence Inn by Marriott, SpringHill Suites by Marriott, Courtyardby Marriott, Hilton Garden Inn and Hilton Homewood Suites. Theaverage age of the assets is less than two years.

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CBRE Hotels initiated work on the transaction on behalf of TheBriad Lodging Group at the beginning of the year, and monitored theperformance of the portfolio and investment marketplace throughoutthe first half of 2010 to gage buyer interest andunderwriting. In June CBRE Hotels approached selectinvestors, a process which culminated with a signed agreement inAugust.

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According to Ron Danko, executive vice president of CBRE, “BradHonigfeld, the president of Briad observed in late 2009 thatrecovery was underway and significant capital was being raised forhotels.” Given the scarcity of deals in the marketplace, he tellsGlobeSt.com, “Brad sensed capital would be attracted to his assetsproviding the ability to monetized the portfolio at his desiredlevel. To the credit of the brands and locations, the portfolioperformed extremely well during the downturn and newly openedhotels were ramping up quickly. Brad’s theory clearly played out asanticipated and the portfolio continue to outperform budgetedresults leading to a win-win situation for Briad and MCR.”

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As for MCR, CEO Tyler Morse, tells GlobeSt.com that “theseassets are high quality additions to our portfolio, especiallygiven their alignment with two of the strongest brands in the hotelindustry, Marriott and Hilton. This acquisition underscores ourstrategy of targeting quality properties in markets with highbarriers to entry.” He adds that MRC will continue to aggressivelypursue strategic acquisitions. “We look forward to furtheracquisitions of strong products to strategically expand our currentportfolio of 1,850 rooms and suites across nine states.”

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Clearly, transaction activity is increasing which is driven byrapidly improving fundamentals and availability of capital, saysDanko. “Hotel’s are highly desirable and allow our clients, such asBraid, to execute corporate strategies,” he says. “In addition tothe Briad transaction, the CBRE NYC hotel team closed six othertransactions totaling over $120 million with six to eightadditional closing scheduled in the first quarter.”

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