Extended stay properties form part of $648 million refinancing deal

George Sell George Sell Uploaded 16 November 2018

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US: A Bank of America-led consortium has provided funding to refinance a 53-property, 5,958-key collection of properties operating under Marriott and Hilton brands.

MCR and Building and Land Technology have secured $647.5 million in financing across the national hotel portfolio.

The 5,958-key collection of select-service and extended-stay hotels encompasses 33 assets operating under Hilton brands, with the remaining 20 properties under Marriott brands. Covering 31 markets across 15 states, the portfolio includes the 123-key Hilton Garden Inn Phoenix Avondale in Avondale, Arizona; the Residence Inn by Marriott Norfolk Downtown - a tower featuring 160 suites in Norfolk, Virginia; and the 120-key Courtyard by Marriott Newport News in Newport News, Virginia. The average age of the entire 53-property portfolio is 12 years.

"After evaluating various alternatives, including CMBS loans, debt funds and balance sheet options, we selected Bank of America to lead this financing because we were seeking a trusted partner that values relationship-oriented balance sheet banking, which delivers better returns to the partnership," said Tyler Morse, CEO  and managing partner of MCR.

Wells Fargo and two mezzanine lenders joined Bank of America in providing MCR and BLT with the financing. Carl Kuehner III, chairman of Building and Land Technology, said: "This financing is a testament to the quality of the portfolio, exceptional lending relationships, strong joint venture partnership and MCR's operational expertise."

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