MCR Closes on $420 Million Refinancing of 30-Hotel Portfolio

The nation’s 4th-largest hotel owner-operator completes a $420 million refinancing of 30 Marriott and Hilton hotels across 17 states.

MCR — the country’s 4th-largest hotel owner-operator — has closed on a $420 million refinancing of 30 hotels across the country. 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%.

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Courtyard by Marriott Salt Lake City/Lehi at Thanksgiving Point (Photo: Business Wire)

MCR secured attractive financing terms during a period of capital markets volatility given its strong lender relationships, institutional sponsorship and superior operating performance. These 30 hotels are all managed by MCR’s in-house operations team that today includes 6,000 professionals and 145 hotels.

Spread across 17 states, the 30-hotel portfolio totals 3,792 rooms and is concentrated in dynamic, high-growth markets — including Florida, Utah, Nevada, Colorado, Texas and South Carolina. The hotels have strong historical and in-place cash flow, and all have recently undergone capital improvements, positioning them well for future growth.

The portfolio’s product type and geographic mix is diverse, consisting of 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).

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

About MCR

• 4^th-largest hotel owner-operator in the United States
• $4.0 billion portfolio of 145 premium-branded hotels
• MCR operates 9 Marriott brands, 8 Hilton brands and a number of unflagged independent hotels
• 25,000 guestrooms across 37 states and 102 cities
• Founded in 2006
• Offices in New York City, Dallas, Chicago and Richmond, Virginia
• 6,000 team members across the country
• Three-time recipient of the Marriott Partnership Circle Award, the highest honor Marriott presents to its owner and franchise partners
• Recipient of the Hilton Legacy Award for Top Performer
• For the TWA Hotel at New York’s JFK Airport, MCR won the Development of the Year (Full Service) Award at The Americas Lodging Investment Summit (ALIS), the Urban Land Institute New York Excellence in Hotel Development Award and the American Institute of Architects national Architecture Award, the highest honor given by the AIA
• Named one of Fast Company’s 10 Most Innovative Travel Companies of 2020
• For more information, please visit mcrhotels.com

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