Through a joint venture, NewcrestImage and Hospitality Capital Partners have closed on the acquisition of 11 Marriott International-branded hotels.
Within the portfolio are 10 Courtyard by Marriott hotels and one Residence Inn by Marriott hotel, according to a news release. The hotels, comprising 1,551 rooms, are located in Georgia, Massachusetts, New York, Oklahoma, Pennsylvania, Texas and Virginia.
“Our company has a strong appetite for solid investment opportunities,” Mehul Patel, managing partner and CEO of NewcrestImage, said in the news release. “These properties and markets offer attractive potential for both profits and appreciation value.”
CoStar data shows that real estate investment trust Service Properties Trust sold a portfolio of seven hotels to the joint venture in February. Though a sales price was not disclosed, the fourth-quarter 2022 supplemental operating and financial data filed by Service Properties shows the REIT sold six Courtyard properties for $40.5 million and one Residence Inn property for $8.3 million in February.
During the REIT's latest earnings call, executives shared the company sold four hotels in the fourth quarter of 2022 for $25.8 million and another eight in January and February for a combined $53.3 million. It has 10 hotels it plans to sell, nine of which are Marriott properties, under contract for a total of $103.1 million.
The identity of the seller for the remaining four hotels acquired by NewcrestImage was not immediately available. As of press time, Service Properties did not respond to a request for more information.
NewcrestImage has partnered with Hospitality Capital Partners in previous deals, such as the acquisition of 16 Marriott International-branded hotels in September 2022. Hospitality Capital Partners is an ownership company based in Phoenix, Arizona. The company and its principals have owned nearly 50 hotels in the western U.S., including the Saguaro Scottsdale.
An active buyer through the year, NewcrestImage closed on its largest acquisition of the year with a portfolio of 45 hotels in November 2022.
Grapevine, Texas-based NewcrestImage owns more than 70 hotels across the U.S. with nearly 8,000 rooms. The company shifted from owner/operator to purely owning and developing hotels after selling off a portfolio of 27 hotels and other assets to hotel REIT Summit Hotel Properties and Singapore wealth fund GIC for $822 million in 2022 and selling off its management operations to Aimbridge Hospitality, which now manages most of NewcrestImage’s hotels.