Hospitality owner and operator MCR has secured a $300 million refinancing for a 22-hotel portfolio.
Totaling 2,855 guestrooms, the portfolio is spread across 14 states in established and high-growth markets such as Texas, Florida, New Mexico and South Carolina. The hotels are managed by MCR’s in-house operations team.
MCR acquired the hotels between 2017 and 2020, and subsequently invested $65 million to renovate and modernize the portfolio.
“We are pleased with the execution we achieved on this refinancing,” MCR Chairman and CEO Tyler Morse said in a statement. “This refinancing lowered our cost of debt capital and provided additional duration as we continue to create value across the portfolio through our management and operational strategies.”
The portfolio’s product type is diverse, consisting of Marriott- and Hilton-affiliated limited-service, select-service and extended-stay hotels across eight flags, including Residence Inn by Marriott, Courtyard by Marriott, Hilton Garden Inn and Homewood Suites by Hilton.
The loan was securitized in a floating-rate single asset, single borrower commercial mortgage-backed security transaction. The new financing replaces the original debt with an outstanding balance of $280 million at the time of payoff.
J.P. Morgan and BMO Capital Markets acted as co-lead managers and joint book runners on the transaction. Eastdil Secured acted as exclusive advisor and Fried Frank served as legal advisor to MCR on the transaction.