NYC-area hotel portfolio sells for $164M

By Amy Tennery | December 20, 2010 11:35AM

From left: CBRE’s Ron Danko and two hotels in the deal: a Branchburg Residence Inn and a Long Island Spring Hill Suites

[Updated 12:39 p.m.] MCR Development has acquired a portfolio of 10 Marriott and Hilton hotels for $164 million, marking one of the largest hotel deals in the country so far this year, according to commercial real estate services firm CB Richard Ellis, which brokered the deal. The collection of mostly extended-stay hotels includes 1,100 rooms across New York, New Jersey, Connecticut and Pennsylvania.

The hotels include a Spring Hill Suites in Bellport, LI, and a Residence Inn in Branchburg, N.J.

The seller, developer Briad Group, held onto the portfolio longer than it intended, according to CBRE broker Ron Danko, who was involved in the deal. Briad, who built the hotels between 2007 and 2010, chose to ride out the recession before unloading the properties.

“There was definitely an emergence of capital that needed to be [in] place,” Danko said. “[This year] they realized that there was that capital emerging rapidly. [We] knew there would be strong interest.”

The seller began quietly marketing the portfolio to select parties in June, Danko said. By August, Briad and MCR had entered negotiations.

The sale comes on the heels of improved outlook among hotel investors — as The Real Deal’s Michael Stoler reported earlier this month, more opportunistic buyers are looking to make hotel purchases in the greater New York region. At the end of November this year, hotel occupancy nationwide was up 7 percent year-over-year, while revenue per available room had risen 10.1 percent, compared to the same time period a year earlier.

Briad and MCR did not immediately return calls for comment.