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MHR Capital Group Launches New AC Hotels in Kennewick, Washington, Boosting Local Economic Growth

MHR Capital Group Breaks Ground on New AC Hotels in Kennewick

MHR Capital Group, a private investment firm based in Bellevue, is excited to announce the groundbreaking of a new AC Hotels by Marriott in Kennewick, Washington. This project, developed in collaboration with A1 Hospitality Group and Fowler Construction, signifies a major expansion in the hospitality sector for the Tri-Cities area.

The new hotel is part of a public-private partnership tied to the City of Kennewick's expansion of the Three Rivers Convention Center (TRCC). It will be physically connected to this expansion, thus enhancing the ability to host regional and national events while greatly stimulating local economic growth. Kamran Hasan, the Founder and CEO of MHR Capital Group, emphasized the strategic importance of this investment: This shows our dedication to quality developments in markets that are experiencing growth. Collaborating with experienced operators and local stakeholders allows us to create unique hospitality experiences while adding long-term value for our investors and the communities we support.

Financially, the project is framed as a Qualified Opportunity Zone Business, providing substantial long-term tax benefits for investors under the Opportunity Zone program initiated by the 2017 Tax Cuts and Jobs Act. The financing for the debt portion comes from Idaho Central Credit Union (ICCU) through Bellevue Capital Group (BCG).

The AC Hotel brand is renowned for modern design and upscale amenities, appealing to both business and leisure travelers. The new Kennewick property aims to position itself as a premier hospitality option within a rapidly developing region backed by strong demographic and economic indicators.

In addition to the hotel, MHR Capital Group plans to announce opportunities for Phase 2 of the masterplan shortly. This next phase will include over 550 residential units and more than 200,000 square feet of retail space, all situated within the same Opportunity Zone, offering similar tax advantages to qualified investors.

Founded in 2011, MHR Capital Group is committed to targeting high-growth, undercapitalized markets across the United States through a disciplined, fundamentals-driven investment strategy. The firm is noted for delivering risk-adjusted returns via value-add real estate and private equity transactions, often in partnership with premier local operators. MHR Capital has a strong track record of identifying unique investment opportunities and generating long-lasting value for investors by merging operational expertise with thorough insights into local market dynamics.

The Kennewick development illustrates MHR Capital's continuous commitment to fostering meaningful economic impacts while ensuring robust financial returns for its partners. For more information or inquiries, visit MHR Capital Group's website.