Qatar-based Al Rayyan Tourism Investment Company has refinanced its debt on three U.S. hotels to the tune of $503 million.
Holliday Fenoglio Fowler, a provider of capital markets and brokerage services, worked on behalf of the borrower to place three floating-rate loans for hotel projects with Mack Real Estate Credit Strategies: a $290-million loan for The Manhattan at Times Square Hotel, a $132-million loan for the St. Regis Bal Harbour Resort and an $81-million loan for the St. Regis Washington, D.C. Each loan carries a four-year term with a one-year extension.
“Our strategy is focused on increasing the value of our hotel portfolio by improving operational efficiency and quality of service while enhancing and developing the properties we acquire to optimize and build new revenue streams,” said Tarek M. El Sayed, managing director and CEO of the Al Rayyan Tourism Investment Company (ARTIC), in a statement. “The refinancing announced today reflects the quality of our asset base and further reduces our financing costs as we execute on that strategy.”
The company, El Sayed added, is seeking more investment opportunities across the U.S. Among other plans, the investment company is finalizing plans for a mixed-use tower to take the place of the current Manhattan at Times Square Hotel. Once redeveloped, the nearly 1,500-foot-tall building will include 250 hotel rooms and 150 condominium residences. ARTIC will continue to operate the hotel on an as-is basis while the plans are in development.