Clarion Partners has secured a $677 million, non-recourse senior mortgage, five-year, fixed-rate financing for the refinancing of CBM Two Hotels LP Portfolio, a portfolio consisting of 52 Courtyard by Marriott hotels. Real estate investment banking firm RobertDouglas advised the company on the project.
"The portfolio's pristine physical condition after a multiyear renovation process, leading brand affiliation, compelling economics and excellent sponsorship allowed us to create a highly competitive process,” Stephen O’Connor, principal and managing director at RobertDouglas, said in a statement. "The market responded enthusiastically, presenting a diverse array of fixed and floating rate financing proposals."
The 7,677-key portfolio is comprised of fee and leasehold interests throughout 25 states and 37 metropolitan areas. Since acquisition in 2005, the sponsor has spent more than $500 million in capital improvements to the portfolio and recently completed a $257 million, portfolio-wide renovation between 2019 and 2024.
"The substantial investment made since the acquisition reflects the sponsor's unwavering commitment to the portfolio," said Patrick Tan, senior vice president at RobertDouglas. "The recent renovations, featuring a modern exterior redesign and upgraded guestroom product, have driven up the portfolio's aggregate RevPAR penetration index."
"This transaction underscores the importance of continuous capital investment in maintaining and enhancing institutional-quality assets in today’s hotel capital market environment,” said Robert Stiles, principal and managing director at RobertDouglas.