Dealmaker: MCR Closes on $420M Hotel Portfolio Refinancing

MCR, New York, closed on a $420 million refinancing of 30 hotels across the country.

Fried, Frank, Harris, Shriver & Jacobson LLP served as legal advisor to MCR on the transaction and Eastdil Secured served as financial advisor.

The financing was provided by balance sheet lenders Wells Fargo (who served as lead left arranger on the transaction), BMO Harris (joint lead arranger), Bank of America and Square Mile Capital at an interest rate of SOFR + 3.73%.

Spread across 17 states, the 30-hotel portfolio totals 3,792 rooms concentrated in high-growth markets including Florida, Utah, Nevada, Colorado, Texas and South Carolina. MCR noted the hotels have strong historical and in-place cash flow and all have recently undergone capital improvements.

The portfolio’s product type and geographic mix includes Hilton- and Marriott-affiliated select-service and extended-stay hotels across eight different flags: Homewood Suites, Hampton Inn & Suites, Hilton Garden Inn, Home2 Suites, Residence Inn, Courtyard, SpringHill Suites and TownePlace Suites. Locations range from leisure destinations such as the Hilton Garden Inn Orlando at SeaWorld to urban markets (Courtyard by Marriott Milwaukee Downtown) to university-driven markets (Hilton Garden Inn, Homewood Suites by Hilton and Home2 Suites by Hilton Champaign/Urbana at the University of Illinois).