RREAF Holdings, a privately held, vertically integrated real estate investment and development firm, has announced a new partnership with hospitality investor Philip McNeill, Sr. for the creation of MxR Hospitality, a company focused on the development and operation of extended-stay hotels across the United States. The joint venture aims to address the growing demand for economy extended-stay properties nationwide.
Eric Watts, Director of Extended Stay at RREAF Holdings, explained that their experience managing multifamily properties highlighted the challenges of maintaining consistency and quality across different locations. “We created our in-house property management firm, RR Living, to address these challenges, and we saw similar gaps in the extended-stay sector, where these assets are often underserved,” he said. “With MxR Hospitality, our goal is to bring the same commitment to operational excellence and best-in-class management to extended-stay hotels, both within our portfolio and across the industry.”
Philip McNeill, Sr. brings extensive experience to the venture. He was one of the first franchise owners of Hampton Inn, opening its second location in Little Rock, AR, in 1984. McNeill, Sr. later became the largest franchise owner of Hampton properties. He also served as Chairman and CEO of Equity Inns, Inc., a publicly traded real estate investment trust. McNeill, Sr. led the company from its founding in 1993 until 2005 and oversaw its $2.2 billion sale to a Goldman Sachs real estate fund in 2007, with a portfolio of 138 hotels.
“Phillip McNeill, Sr. is a trailblazer in the hotel industry, known for his investment acumen and belief in the importance of long-term partnerships based on mutual respect and benefit,” said Kip Sowden, chairman and CEO of RREAF Holdings. “We see excellent potential and a strong operating model for economy extended stay properties in today’s marketplace.”
The extended-stay sector has seen significant growth in recent years, and MxR Hospitality is poised to capitalize on this trend. The joint venture will focus on enhancing both existing economy extended-stay assets and those currently under development. The goal is to create a network of properties that meet the demands of travelers seeking long-term accommodations with reliable, consistent services.
As the economy extended-stay market continues to grow, MxR Hospitality’s approach will focus on operational excellence and creating long-term value for investors. The joint venture expects to expand its footprint across the country, offering affordable and quality accommodations for extended stays.
