NEW YORK CITY AND STAMFORD, CONN. — MCR and Building and Land Technology (BLT) have secured a $632 million loan for the refinancing of a portfolio of 53 hotels across the United States. The financing features a three-year, fixed-rate term, and was securitized in a single-asset, single-borrower CMBS transaction. This type of financing structure is reserved for large properties or portfolios.
MCR and BLT acquired the 53 hotels between 2013 and 2015. The portfolio totals 5,958 guest rooms across 14 states. According to MCR, the portfolio is valued at approximately $960 million. MCR also stated that the properties are concentrated in high-growth markets such as Texas, Arizona, Virginia and North Carolina.
The portfolio is comprised of eight Marriott and Hilton extended stay and select-service brands, including Residence Inn by Marriott, Courtyard by Marriott, TownePlace Suites by Marriott, Hilton Garden Inn and Hampton Inn by Hilton. The hotels are managed by MCR’s in-house operations team.
MCR and BLT have collectively made more than $118 million in capital improvements since acquiring the properties, including upgrades to the guest rooms and public spaces, as well as property maintenance.
MCR is a hotel manager headquartered in New York City. The company’s $5 billion portfolio currently comprises 150 hotels. MCR operates nine Marriott brands, eight Hilton brands and several unflagged independent hotels. The company, alongside MORSE Development, is also involved in the development of Gramercy Park Hotel, a 197-room hotel in New York City.
BLT is a developer and owner-operator based in Stamford. The firm has developed 25 million square feet of real estate across commercial and residential properties, according to MCR.
Citigroup Global Markets served as the manager and book runner on the transaction. Eastdil Secured LLC acted as exclusive advisor to MCR and BLT. Fried, Frank, Harris, Shriver & Jacobson LLP was the legal advisor.
— Channing Hamilton