Pebblebrook Hotel Trust has refinanced its mortgage loan on the 369-room Margaritaville Hollywood Beach Resort in Hollywood, FL.
The $140-million secured loan has a three-year initial term with two one-year extension options, subject to the satisfaction of certain conditions. The company executed interest rate swaps to establish a fixed interest rate of 7% throughout the loan’s duration. The payoff of the remaining $21.5 million of the previously existing $161.5-million CMBS loan secured by the resort was funded by the company’s cash on hand.
“We are extremely pleased with the favorable terms of this loan in a challenging financing market,” said Raymond D. Martz, co-president/CFO, Pebblebrook Hotel Trust. “This refinancing extends our debt maturities and preserves additional liquidity for debt paydowns and other strategic opportunities.”
Wells Fargo Securities LLC served as the sole lead arranger in forming a syndicate of lenders for the financing, and Wells Fargo Bank NA will serve as administrative agent.
As a result of the Margaritaville Hollywood refinancing, the effective weighted average interest rate of Pebblebrook’s total outstanding debt and convertible notes is approximately 4.3%, with 78% of the company’s debt at fixed interest rates and 22% at floating interest rates.
