MCR and BLT Complete $632 Million Refinancing of 53-Hotel Portfolio
19 Abril 2024 - 8:30AM
Business Wire
MCR, and Building and Land Technology (BLT), a premier real
estate firm that has developed more than 25 million square feet of
real estate across commercial and residential properties, have
closed a $632 million, three-year, fixed-rate financing on a
portfolio of 53 hotels across the United States.
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Homewood Suites by Hilton
Phoenix/Avondale (Photo: Business Wire)
“This refinancing is a validation of the quality of assets in
the portfolio and the attractive operating and financial
performance of properties managed by MCR,” says Tyler Morse,
Chairman and CEO of MCR.
Carl Kuehner, Chairman of BLT, remarks, “It is a great
achievement to accomplish a refinancing of this size and scope in
today’s challenging debt environment. Pricing on the bonds was
strong with our AAA’s coming in at +145. This deal is a great
outcome for our partnership.”
MCR and BLT acquired the 53 hotels — totaling 5,958 guestrooms —
between 2013 and 2015. Spread across 14 states, the portfolio is
concentrated in high growth markets, including Texas, Arizona,
Virginia and North Carolina. The diverse portfolio is comprised of
eight Marriott and Hilton extended stay and select service brands,
including Residence Inn by Marriott, Courtyard by Marriott,
TownePlace Suites by Marriott, Hilton Garden Inn and Hampton Inn by
Hilton.
The loan was securitized in a single asset, single borrower
(“SASB”) CMBS transaction with the portfolio valued at $960
million.
The hotels are managed by MCR’s in-house operations team, which
includes 7,000 professionals across 150 hotels. Under the
stewardship of MCR and BLT, the portfolio achieved over $64 million
of NOI on a trailing 12-month basis at closing, up from $55 million
NOI in 2021. Since acquisition, MCR and BLT collectively invested
over $118 million of capital expenditures into the portfolio across
guestroom improvements, public space upgrades and general property
maintenance.
Citigroup Global Markets acted as manager and book runner on the
transaction. Eastdil Secured LLC served as exclusive advisor to MCR
and BLT. Fried, Frank, Harris, Shriver & Jacobson LLP served as
legal advisor.
About MCR
- $5.0 billion portfolio of
150 premium-branded hotels
- MCR operates 9 Marriott brands, 8 Hilton brands and a number of
unflagged independent hotels
- Over 25,000 guestrooms
across 37 states and 107 cities
- Developing the Gramercy Park
Hotel in New York City and the BT Tower in London
- Founded in 2006
- Offices in New York City, Dallas, Chicago and Richmond,
Virginia
- 7,000 team members across the country
- Three-time recipient of the Marriott
Partnership Circle Award, the highest honor Marriott
presents to its owner and franchise partners
- Recipient of the Hilton Legacy Award
for Top Performer
- For the TWA Hotel at New York’s JFK Airport, MCR won the
Development of the Year (Full Service)
Award at The Americas Lodging Investment Summit (ALIS),
the Urban Land Institute New York Excellence in Hotel Development
Award and the American Institute of Architects national
Architecture Award, the highest honor given by the AIA
- Named one of Fast Company’s 10 Most
Innovative Travel Companies
- For more information, please visit mcrhotels.com
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