American Hotel Income Properties to Acquire 18 Northeast Hotels for $407.4 Million

/American Hotel Income Properties to Acquire 18 Northeast Hotels for $407.4 Million

American Hotel Income Properties to Acquire 18 Northeast Hotels for $407.4 Million

|2017-06-01T23:00:19-04:00June 1st, 2017|

June 02–A Canadian real estate trust is acquiring two Lehigh County properties among 18 lodging locations in five northeastern states for $407.4 million.

The Homewood Suites by Hilton at 7686 Industrial Drive in Upper Macungie Township and 2031 Avenue C in Bethlehem are being packaged with 0 Marriott- and eight Hilton-brand 8 Marriott-brand hotels to be purchased by American Hotel Income Properties REIT LP of Vancouver. The deal is expected to close by the end of this month.

American Hotel President Ian McAuley declined Wednesday to divulge the local hotels' selling company. But Lehigh County property records show both were acquired in December 2010 by MCR Development LLC of Flower Mount, Texas, for a combined $21 million. An MCR spokesman declined to comment.

The sale to American Hotel will give the company 113 hotels in 33 states with 11,570 guest rooms. The local Homewood Suites have a combined 211 rooms and list 2016 occupancy rates around 90 percent, higher than the 84.8 percent aggregate average for the 18 hotels, according to American Hotel.

Both hotels are in business areas: The Bethlehem Homewood Suites is in Lehigh Valley Industrial Park I off Schoenersville Road, while the Upper Macungie hotel is off Route 100, between Route 222 and Interstate 78. The remaining hotels in the deal are in four other states: Connecticut, Maryland, New Jersey and New York.

American Hotel, which is headquartered in Vancouver, British Columbia, said its hotel manager, ONE Lodging Management, will operate the hotels. The company said the purchase price includes brand-mandated property improvements.

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