MCR Refinances 22-Hotel Portfolio for $300 Million
NEW YORK--(BUSINESS WIRE)--MCR — the country’s 3rd-largest hotel owner-operator — has secured a $300 million refinancing for a 22-hotel portfolio.
“We are pleased with the execution we achieved on this refinancing”
Totaling 2,855 guestrooms, the 22-hotel 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 of approximately 7,000 professionals.
MCR acquired the hotels between 2017 and 2020, and subsequently invested $65 million to renovate and modernize the portfolio, while also implementing a detail-oriented, data-driven approach to operations to improve asset performance.
“We are pleased with the execution we achieved on this refinancing,” says Tyler Morse, Chairman and CEO of MCR. “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 (“SASB”) CMBS 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.
About MCR
- 3rd-largest hotel owner-operator in the United States
- $5.0 billion portfolio of 150 premium-branded hotels
- MCR operates 9 Marriott brands, 8 Hilton brands and a number of unflagged independent hotels
- Over 25,000 guestrooms across 37 states and 107 cities
- Founded in 2006
- Developing the Gramercy Park Hotel in New York City and BT Tower in London
- Offices in New York City, Dallas, Chicago and Richmond, Virginia
- 7,000 team members across the country
- Named one of Fast Company’s 10 Most Innovative Travel Companies
- Three-time recipient of the Marriott Partnership Circle Award, the highest honor Marriott presents to its owner and franchise partners
- Recipient of the Hilton Legacy Award for Top Performer
- For the TWA Hotel at New York’s JFK Airport, MCR won the Development of the Year (Full Service) Award at The Americas Lodging Investment Summit (ALIS), the Urban Land Institute New York Excellence in Hotel Development Award and the American Institute of Architects national Architecture Award, the highest honor given by the AIA
- For more information, please visit mcrhotels.com
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