Dealmaker: JLL Secures $60M in Hotel Financing

JLL, Chicago, secured $60 million to refinance the 325-key Hyatt Regency Houston Galleria. Metlife, New York, provided the loan, which retired existing construction debt.

JLL Senior Managing Director Jeffrey Davis, Executive Managing Director Mike Melody, Managing Directors Kevin Davis and Paul House and Senior Vice Presidents Matt Nowaczyk and John Ream led the debt placement team.

“The cost of debt is attractive and we’re seeing an increased number of lenders active in the Houston market, making it an ideal time for such owners to refinance,” Jeffrey Davis said.

The recently constructed institutional-quality hotel is in Houston’s Uptown submarket, adjacent to The Galleria, a 2.4 million-square-foot high-end retail center. The hotel has more than 19,000 square feet of flexible meeting and event space and two food and beverage outlets.

JLL also arranged the sale of The Hyatt Select Service and Extended Stay Portfolio, which includes 38 Hyatt Place and Hyatt House hotels located across 21 states. ARA Asset Management Limited, Singapore, purchased the institutional-quality portfolio for an undisclosed sum.

Managing Directors Mark Fair and Al Calhoun led the JLL team on the transaction.

“The select service hotel segment is experiencing steady fundamental and demand growth,” Calhoun said. “With corporate transient and leisure business travel up, we anticipate this product to continue its strong performance.”

The portfolio totals 4,950 rooms and in markets including Boston, Chicago, Nashville, Tenn., Charlotte, N.C., Denver, Philadelphia, Sacramento, Calif. and northern New Jersey.