MHR Capital Group Breaks Ground on AC Hotels by Marriott in Kennewick, Washington

BELLEVUE, Wash., May 29, 2025 /PRNewswire/ -- MHR Capital Group, a Bellevue-based private investment firm focused on strategic real estate and private equity ventures, has announced the groundbreaking and commencement of construction on a new AC Hotels by Marriott in Kennewick, Washington. Developed in partnership with A1 Hospitality Group and Fowler Construction, this project represents a significant new hospitality asset in the Tri-Cities region.

This project is a part of a public/private partnership in conjunction with the City of Kennewick's expansion of the Three Rivers Convention Center (TRCC). The new AC Hotel will be physically connected to the expansion, enhancing the area's ability to attract regional and national events and significantly boosting local economic activity.

The project is structured as a Qualified Opportunity Zone Business, providing 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 (ICCU) via Bellevue Capital Group (BCG).

"This investment reflects our disciplined focus on high-quality developments in growth markets," said Kamran Hasan, Founder and CEO of MHR Capital Group. "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 AC Hotel brand, part of the Marriott International portfolio, is known for its modern design, upscale amenities, and appeal to both business and leisure travelers. The Kennewick property will provide a high-end hospitality option in a fast-growing region with strong demographic and economic fundamentals.

In addition to the hotel, 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. These assets are also located within the Opportunity Zone and offer the same tax-advantaged structure for qualified investors.

Founded in 2011, MHR Capital Group targets high-growth, undercapitalized markets across the U.S. through a disciplined, fundamentals-driven investment strategy. The firm focuses on generating risk-adjusted returns through value-add real estate and lower middle-market private equity transactions, often in partnership with best-in-class local operators. MHR Capital has a successful track record of identifying off-market opportunities and creating long-term value for investors by combining operational expertise with a deep understanding of local market dynamics.

The Kennewick development highlights MHR Capital's ongoing commitment to driving meaningful economic impact while delivering strong financial outcomes for its investment partners.

For more information, please visit www.mhrcapitalgroup.com or contact:

Media Contact:
Sofia De La Cruz
Investor Relations
Email:IR@mhr-capital.com
Phone: 425-800-6208 ext 102
Website:www.mhr-capital.com

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SOURCE MHR Capital Group