MCR and Building and Land Technology (BLT) have closed a $632-million, three-year, fixed-rate financing on a portfolio of 53 hotels across the U.S.
“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,” said Tyler Morse, chairman/CEO, MCR.
Carl Kuehner, chairman, BLT, said, “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 portfolio comprises eight Marriott and Hilton extended-stay and select-service brands and includes the Homewood Suites by Hilton Phoenix/Avondale, Residence Inn by Marriott Norfolk Downtown, Hampton Inn & Suites Tulsa South-Bixby and Hilton Garden Inn Richmond Innsbrook.
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. Under the stewardship of MCR and BLT, the portfolio achieved more than $64 million of NOI on a trailing 12-month basis at closing, up from $55 million NOI in 2021. Since acquiring the hotels, MCR and BLT collectively invested more than $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.
