Privately-held investment firm MHR Capital Group has broken ground on a new AC Hotels by Marriott in Kennewick, Wash. The project—part of a public/private partnership in conjunction the city of Kennewick's expansion of the Three Rivers Convention Center— was developed as part of a collaboration with A1 Hospitality Group and Fowler Construction. The new upscale AC Hotel will be connected to the event facility.
“This investment reflects our disciplined focus on high-quality developments in growth markets," Kamran Hasan, founder and CEO of MHR Capital Group, said in a statement. "By partnering with experienced operators and local stakeholders, we're able to deliver a differentiated hospitality experience while creating long-term value for our investors and the communities we serve."
The project is structured as a Qualified Opportunity Zone Business, which is designed to provide investors with significant long-term tax advantages under the Opportunity Zone program established by the 2017 Tax Cuts and Jobs Act. The debt portion was financed by Idaho Central Credit Union via Bellevue Capital Group.
In addition to the hotel, Bellevue, Washington-based MHR Capital Group will soon be opening the investment opportunity for Phase 2 of the masterplan, which will include over 550 residential units and more than 200,000 square feet of retail space.