MHR Capital Group Breaks Ground on AC Hotels by Marriott in Kennewick, Washington
MHR Capital Group, a Bellevue-based private investment firm, has officially broken ground on a new AC Hotels by Marriott in Kennewick, Washington, marking a major addition to the region’s hospitality infrastructure. The project is being developed in collaboration with A1 Hospitality Group and Fowler Construction.
The hotel will be directly connected to the expanded Three Rivers Convention Center (TRCC), a key initiative by the City of Kennewick to boost tourism and attract larger events. This public-private partnership is expected to generate significant economic impact throughout the Tri-Cities region.
The development qualifies as an Opportunity Zone investment, offering tax incentives under the 2017 Tax Cuts and Jobs Act. Financing was provided by Idaho Central Credit Union (ICCU) through Bellevue Capital Group.
“This investment reflects our disciplined focus on high-quality developments in growth markets,” said Kamran Hasan, Founder and CEO of MHR Capital Group. “We’re creating a differentiated hospitality experience that adds value for investors and communities alike.”
The AC Hotels by Marriott brand is known for sleek design and modern amenities, catering to both business and leisure travelers. The Kennewick location will fill a gap in upscale accommodations in a region with strong economic and demographic growth.
Looking Ahead: Phase 2
MHR Capital Group also revealed plans for Phase 2 of the master development:
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Over 550 residential units
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More than 200,000 square feet of retail space
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All within the same Opportunity Zone framework, offering tax-advantaged investment options
Founded in 2011, MHR Capital specializes in value-add real estate and lower middle-market private equity across the U.S., often partnering with top-tier local operators. The firm is recognized for its success in uncovering off-market opportunities and delivering long-term value through fundamentals-based investment strategies.
This Kennewick project underscores MHR Capital's ongoing commitment to combining local impact with investor returns.
