The Residence Inn Norfolk Downtown in Norfolk, VA.
NEW YORK CITY—A joint venture of hotel owner-operator MCR and real estate development and investment firm Building and Land Technology report they have completed a $647.5-million national hotel portfolio refinancing deal.
Bank of America led the financing, which also included Wells Fargo and two mezzanine lenders. The national portfolio owned by New York City-based MCR and BLT of Stamford, CT, encompasses 5,958 guest rooms at 53 Marriott and Hilton select service and extended stay hotels located in 15 states and 31 markets.
The two companies report the financing's proceeds repaid current loans and returned capital to the joint venture.
Thirty-three of the hotels fly Marriott brand flags, while 20 properties operate under Hilton brands. On average, the portfolio's hotels are 12 years old and generate RevPAR of $90 and a RevPAR Index of 120%.
“This transaction is the result of our strong financial partnership with BLT and the industry-leading operating performance generated by MCR's property-level management teams,” says Tyler Morse, CEO and managing partner of MCR and MORSE Development. “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.”
“This financing is a testament to the quality of the portfolio, exceptional lending relationships, strong joint venture partnership and MCR's operational expertise,” says Carl Kuehner III, chairman of Building and Land Technology.
MCR, which also has offices in Dallas, is the sixth-largest hotel owner-operator in the US and has invested in and developed 104 hotel properties with more than 12,000 rooms in 27 states. MCR's hotels are operated under 11 brands.
BLT has invested in, developed, owned and managed more than 25 million square feet of commercial, hotel and residential properties across 26 states. The firm is also the largest franchisee of Sotheby's residential real estate brokerage, with 28 offices and 1,000 real estate agents.
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John Jordan
John Jordan is a veteran journalist with 36 years of print and digital media experience.
