JLL has secured $275 million to refinance a portfolio of 63 WoodSpring Suites economy extended-stay hotels. The portfolio contains 7,557 keys located across 60 submarkets and 20 states, including many of the fastest-growing lodging markets in the country. JP Morgan provided the five-year, floating-rate loan to WoodSpring Hotels.
Managing directors Kevin Davis and Bill Grice led the JLL team on the transaction.
“This geographically diverse portfolio is comprised of high-quality assets that generate strong cash flows, and is backed by premier institutional sponsorship,” Davis said. “For these reasons, the financing was well-received by the lending community, particularly Wall Street investment banks and the debt funds.”
Grice added, “The strong lender interest further illustrates the institutionalization of the economy extended-stay sector. We have financed a number of economy extended stay portfolios, and even in today’s more conservative lending environment, banks now understand that this asset class offers great performance upside, while mitigating downside risk in a recession.”
WoodSpring Hotels has more than 200 properties in more than 30 states, comprising nearly 25,000 guestrooms. WoodSpring Hotels, formerly known as Value Place, was created in 2003 by Jack DeBoer, the founder of extended-stay brands such as Residence Inn, to provide a cost-effective alternative to other extended-stay lodging and short-term housing. The WoodSpring Suites brand was unveiled in April 2015 to provide a more upscale product that could command a rate premium.