CMBS's Bring in $100M for MeriStar

ARLINGTON, VA-MeriStar Hospitality Corp. has decided to take advantage of existing low interest rates by finalizing a commercial mortgage-backed securities financing deal to the tune of $101 million. The hotel REIT relied on four of its properties to secure the CMBS loan, which carries a term of 10 years at 6.88% interest.

“This transaction represents another step in our effort to strengthen our balance sheet by adding long-term, fixed-rate debt at an attractive interest rate while reducing debt with higher interest rates and shorter maturities,” MeriStar CFO Donald D. Olinger explains. “We will continue to seek to reduce our interest costs and improve our credit statistics by taking advantage of opportunities in the market as they arise.”