MCR refinances 16 hotels for $333m
Transactions - FEBRUARY 9, 2024

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MCR refinances 16 hotels for $333m


MCR announced it has refinanced a 16-hotel portfolio for $333 million, generating $51 million of net proceeds.

In less than three years, MCR doubled the portfolio’s net operating income, increasing it from $15 million at acquisition to $36 million. This represents a 9.4 percent cap rate on MCR’s cost basis in the hotels.

MCR acquired the 16 hotels — totaling 2,274 guestrooms — primarily in 2020 and 2021. Spread across 11 states, the portfolio is concentrated in high-growth markets, including Texas, North Carolina, Florida and Arizona. The portfolio comprises 11 Hilton and Marriott extended stay and select service brands, including Home2 Suites by Hilton, Hilton Garden Inn, DoubleTree by Hilton, Hampton by Hilton, Residence Inn by Marriott and Courtyard by Marriott.

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 $268 million at t

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