MCR Hotels has acquired the 120-room Courtyard by Marriott Dallas Grand Prairie, between Arlington and Dallas and equidistant to both.
Brokerage house Marcus & Millichap put the sale together procuring both the buyer and representing the seller, Anderson Companies. The hotel is fairly new having opened in 2021.
“Growing occupancy and average daily room rates throughout the Metroplex are drawing the attention of hospitality investors,” said Chris Gomes, senior managing director investments in Marcus & Millichap’s Dallas office. “The area’s strong economic growth, underscored by the large quantity of corporate move-ins during the pandemic, indicate a coming increase in business travel that bodes well for the hospitality industry overall.”
Pete Fehlman, managing director with Marcus & Millichap Capital Corporation in Dallas arranged acquisition financing. “The best-in-class sponsorship and strong location allowed us to receive multiple term sheets from our lending relationships,” said Fehlman. “We’re looking forward to seeing the success this experienced hotelier will achieve with the property.”
The hotel, which has 2,000 square feet of on-site meeting space, was purchased with acquisition financing from American Momentum Bank in place, at a rate of SOFR plus 260 basis points and a 65% loan to value.
The Courtyard by Marriott Dallas Grand Prairie benefits from its location, which is 15 minutes south of DFW International Airport, the second-busiest airport by passenger traffic in the world. The area is also a major manufacturing and distribution hub, with a significant presence from major corporations like Lockheed Martin, Poly America, Flex N Gate, General Motors, and Mission Foods, among others.
MCR Hotels, led by CEO Tyler Morse, is the country’s 4th-largest hotel owner-operator with a $5-billion portfolio of 145 branded hotels. MCR operates nine Marriott brands, eight Hilton brands and a number of unflagged independent hotels, with more than 21,000 rooms across 37 states and 103 cities.
Its pièce de résistance is the TWA Hotel at New York’s JFK Airport, for which MCR won the Development of the Year (Full Service) Award at The Americas Lodging Investment Summit (ALIS), the Urban Land Institute New York Excellence in Hotel Development Award and the American Institute of Architects national Architecture Award, the highest honor given by the AIA. The hotel opened in 2019 and, according to reports, cost $265 million.
The Dallas Fort Worth MSA is now home to almost eight million residents, representing an increase of 22 percent over the past decade. The Courtyard is MCR’s eighth hotel in Dallas and its 39th hotel in Texas.