A joint venture of NewcrestImage and Hospitality Capital Partners has closed on its acquisition of 16 Marriott International-branded hotels for $137.3 million.
The portfolio includes 13 Courtyard by Marriott properties and three Residence Inn by Marriott hotels across nine states, according to the news release. The hotels comprise 2,155 rooms. Eleven of the properties underwent renovations between 2018 and 2019.
The two companies announced the deal with seller Service Properties Trust, a hotel real estate investment trust, in late September 2022.
“This transaction suits our company’s style of strategically acquiring properties with strong fundamentals, especially during times of a difficult or slowed-down economy,” said Mehul Patel, managing partner and CEO of NewcrestImage.
HCP principals Keith Mishkin and Primo Parmar said the deal was an opportunity for the joint venture to add revenue immediately while growing long-term profit potential and asset value. HCP is a Phoenix-based hotel ownership company.
Dallas-based NewcrestImage and HCP announced in March their joint venture closed on another 11 hotels. CoStar data shows that 11 of those hotels were also from Service Properties. The REIT did not respond to a request about the remaining four hotels in that deal.
NewcrestImage has been an active buyer since selling off its real estate portfolio to hotel REIT Summit Hotel Properties and Singapore sovereign wealth fund GIC for $822 million. It also sold off its management operations to Aimbridge Hospitality, which now manages its hotel portfolio.