A pair of Marriott-branded hotels in Montgomery County is changing hands as part of a large portfolio deal involving a hospitality giant.
The Courtyard by Marriott in Willow Grove and the Residence Inn by Marriott in Horsham are two of 16 Marriott-branded (NASDAQ: MAR) hotels being acquired by a joint partnership between NewcrestImage of Texas and Hospitality Capital Partners of Arizona. The hotels sit around a mile-and-a-half from each other.
The current owner of the properties, HPTRI Corp, is an affiliate of Newton, Massachusetts-based Service Properties Trust (NASDAQ: SVC). The sale is expected to close in the fourth quarter. A representative for the buyer declined to disclose the sale price.
Built in 1989, the 149-room Courtyard sits on 4.5 acres at 2350 Easton Road near the Pennsylvania Turnpike. The 118-room Residence Inn at 3 Walnut Grove Drive was built in 1990 and sits along 4.3 acres.
The overall portfolio includes Marriott hotels with a total of 2,155 rooms across nine states. That includes 13 Courtyard properties and three Residence Inn properties in Georgia, Massachusetts, North Carolina, New York, Oklahoma, Pennsylvania, South Carolina, Texas and Virginia.
“This acquisition affirms our high expectations and high confidence in hotel investments, both near term and long term,” said Mehul Patel, managing partner and CEO of NewcrestImage. “We’re hungry to be part of hospitality’s growth and prosperity.”
Hospitality Capital Partners lists real estate investors Keith Mishkin and Primo Parmar as principals. Hospitality Capital Partners and its principals have owned nearly 50 hotels in the western part of the country, including the Saguaro Scottsdale in Arizona, according to a news release. An associated company, Parks Legacy Project, has 25 golf courses.
NewcrestImage is a privately held family office investment firm with a portfolio of diversified real estate assets and alternative investments. The firm has completed $3 billion in real estate transactions, including more than 200 hotel transactions. Including the current 16-property deal, NewcrestImage has added 76 hotels to its portfolio since March.
Earlier this year, an affiliate of NewcrestImage became one of the largest shareholders of Summit Hotel Properties Inc. (NYSE: INN). The company recently announced another large hotel purchase of 45 properties, none of which are on the East Coast.
Service Properties Trust owns dozens of hotels across Pennsylvania, New Jersey and Delaware. The real estate investment trust focuses on hotels and service-focused retail net lease properties.
Service Properties Trust also owns a 34% stake in Sonesta Holdco Corp, the parent company of the Royal Sonesta flag, one of which is located at 1800 Market St. in Center City. The company itself is externally managed by The RMR Group (NASDAQ RMR), an asset management company with over $37 billion in managed assets.
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