PHOENIX-A rebounding economy and high growth was one of the drivers behind MIG Real Estate's recent acquisition of two limited-stay hotels in the region. According to MIG CEO Greg Merage, the $25.4 million portfolio transaction came about due to the metro's status as one of the highest growth markets in the US. Campbell Lodging Inc. of Anaheim, CA was the seller.
"Hospitality was one of the first real estate property types to be impacted by the recession, and the impact was significant," Merage tells GlobeSt.com in an email. He goes on to say that decline in business and leisure travel led to national occupancies below 60%. "With improving national and local economies, most major markets are experiencing improvement in RevPAR performance, which is creating a favorable climate for hotel investment," Merage notes.
Also in play with the investment decision was that the 107-room Fairfield Inn & Suites and the 170-room Scottsdale Holiday Inn Express complement MIG's other area investments. According to a recent report in Business Real Estate Weekly of Arizona, MIG Real Estate now owns 396 rooms in three Valley properties. Furthermore, MIG Cos. and affiliates own office, retail, industrial and multifamily assets in Arizona, as well as in other western states. In February, MIG Real Estate acquired 304 units within the 508-unit Acacia Creek apartments for $39.4 million.
"Our current activity has been focused more on multi-family and select service hotels in primary markets in western and sunbelt states," Merage explains. "But we are also actively looking for office and grocery-anchored retail properties; we have acquired approximately $800 million of properties over the past four years."
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