MCR, Building and Land Technology close $647.6M financing for 53 hotels

The Courtyard by Marriott Abilene Southwest/Abilene Mall South in Abilene, Texas, part of MCR's hotel portfolio. Photo credit: Marriott International

A joint venture between MCR and Building and Land Technology closed on $647.5 million in financing for a 5,958-room national portfolio of 53 Marriott and Hilton select service and extended-stay hotels across 15 states and 31 markets.

Thirty-three of the hotels are Marriott-branded, while 20 properties operate under Hilton flags. On average, the portfolio’s hotels are 12-years-old and generate RevPAR of $90 and a RevPAR Index of 120 percent.

Bank of America led the financing, which also included Wells Fargo and two mezzanine lenders. The proceeds repaid current loans and returned capital to the joint venture.

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“This transaction is the result of our strong financial partnership with BLT and the industry-leading operating performance generated by MCR’s property-level management teams,” said Tyler Morse, CEO and managing partner of MCR and MORSE Development, in a statement. “After evaluating various alternatives including CMBS loans, debt funds and balance sheet options, we selected Bank of America to lead this financing because we were seeking a trusted partner that values relationship-oriented balance sheet banking, which delivers better returns to the partnership.”

“This financing is a testament to the quality of the portfolio, exceptional lending relationships, strong joint venture partnership and MCR’s operational expertise,” Carl Kuehner III, chairman of Building and Land Technology, said.

MCR is the sixth-largest hotel owner-operator in the country and has invested in and developed 104 properties under 11 brands with more than 12,000 rooms in 27 states. The firm has offices in New York City and Dallas, and is a recipient of the Marriott Partnership Circle Award, the highest honor Marriott presents to its owner and franchise partners, as well as the Hilton 2017 Top Performer Award.

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