MCR Hotels has snapped up another hotel property in the Sun Belt, acquiring a Staybridge Suites in Chattanooga, Tennessee, for $14.5 million.
MCR bought the 5-story property at 1300 Carter St. on Nov. 29 from 3H Group Hotels, according to public records. The 124-room hotel opened in 2003 and is located next to the Chattanooga Convention Center.
Sales of U.S. hotels have dipped this year amid rising interest rates and a potential recession, according to a CoStar market report. Sales volume in November dropped 14% to $2.3 billion compared to the prior-year period.
The deal marks at least the third hospitality property acquired by MCR in the Southeast this year, according to CoStar data. In July, New York-based MCR bought a DoubleTree by Hilton in Tallahassee, Florida, for $27.8 million from CW Capital Management. MCR also acquired a Homewood Suites by Hilton in Little Rock, Arkansas, in February for $17.2 million from McKibbon Hotel Group.
Separately, 3H Group plans to develop a $30 million Caption by Hyatt in downtown Chattanooga at 105 W. Main St., the first Hyatt property in the city, according to the company.
Hyatt developed the Caption brand as an upscale, select-service hotel. Hyatt opened the first Caption location worldwide this summer in Memphis, Tennessee, after the brand’s debut was delayed by the pandemic.