"Given the success we've had with syndicated hotel deals throughout the past decade, there was a growing interest from our investors to start a dedicated platform for hospitality-specific ventures," said Matt Lippman, executive vice president of JRK Investors. "The ability to buy a primely located portfolio of Marriott-branded assets in Austin with a significant value-add component was one we could not pass up and is an example of the type of high-yield opportunities we will continue to seek on behalf of our investors."

Austin is one of the fastest growing areas in the nation, attracting a young population and has become a hub for high-tech companies including Oracle, Facebook and IBM, which maintain a sizable and growing employee base. The state capital also hosts internationally known annual concerts and events, including South by Southwest and the Austin City Limits music festival, drawing a consistent flow of visitors throughout the year.

JLL handled the transaction on behalf of the seller, while JRK was self-represented.

JRK is known for its $6 billion in multifamily holdings and several syndicated hotel transactions. Its $350 million hospitality fund, the firm's seventh fund overall and first dedicated hotel fund, will focus on full- and select-service hotels for value-add and core plus investments in the nation's top 25 markets. The fund targets transactions of more than $25 million and up to as large as $3 billion for portfolios, which would be made through its fully discretionary fund comprised of high-net worth individuals or through joint ventures with strategic partners.