Dealmaker: JLL Announces $260M Refinancing for New York Times Square Hotel

(Image courtesy of JLL)

MCR Hotels, Island Capital Group and JLL, Chicago, announced MCR and Island closed on a $260 million refinancing of the Sheraton New York Times Square.

The JLL team was led by the JLL Hotels and Hospitality Group Americas CEO Kevin Davis,  Managing Director Mark Fisher and Analyst Russell Freed. Fried Frank served as legal advisor to MCR and Island.

“We are in the midst of a strong recovery across all segments of New York City’s hotel market. This refinancing is indicative of improved debt capital markets sentiment in New York, which we expect will persist as the hotel market continues to benefit from the recovery of group, business transient and foreign travel demand,” Davis said.

The four-year, floating-rate loan retires $250 million in outstanding seller-financing that was sourced when MCR Hotels and Island acquired the hotel in April 2022. The new financing was provided by funds managed by affiliates of Fortress Investment Group.