NEW YORK—A joint venture of MCR and Building and Land Technology (BLT) has completed a $647.5-million financing across a 5,958-guestroom national portfolio of 53 Marriott and Hilton select-service and extended-stay hotels spanning 15 states and 31 markets.
Thirty-three of the hotels carry Marriott brands, while 20 properties operate under Hilton brands. On average, the portfolio’s hotels are 12 years old and generate RevPAR of $90 and RevPAR Index of 120%.
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.
“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. “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,” said Carl Kuehner III, chairman of Building and Land Technology.