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Florida & Gulf Coast  + Gulf Coast  + Finance  | 
A&R Hospitality has secured a $63-million CMBS loan to refinance its portfolio of nine hotels in Gulf Coast region of AL and FL.

A&R Hospitality Secures $63M Refi for Gulf Coast Hotel Portfolio

Gulf Shores, AL-based A&R Hospitality has secured a $63-million CMBS loan to refinance its portfolio of nine limited/select and extended-stay hotels located in Gulf Coast region of AL and FL.

Rushi Shah and Prabhat of Mag Mile Capital arranged the financing on behalf of the borrower, a repeat client.

Terms

  • Assets: 724 rooms
  • Total Loan Amount: $63 million
  • Loan-to-Value: 60%
  • Loan Type: CMBS cash out
  • Interest Rate: 6.06% (Term SOFR swaps + 360 bps)
  • Amortization: 30 years
  • Loan Terms: 10 years; four years interest only

Properties

  • Beachside Resort Hotel, Gulf Shores, AL
  • Fairfield Inn & Suites, Orange Beach, AL
  • Home2 Suites Daphne, AL
  • Home2 Suites Mobile, AL
  • Motel 6 Gulf Shores, AL
  • Quality Inn Gulf Shores, AL
  • Red Roof Inn Gulf Shores, AL
  • Red Roof Inn Pensacola, FL
  • Staybridge Suites Gulf Shores, FL

“Rushi Shah and Mag Mile put together a syndicate of three lenders: Société Générale, Bank of Montreal, and Goldman Sachs,” said Ken Patel, CEO of A&R Hospitality. “This created strong demand for the loan in the secondary market.”

The transaction provided A&R Hospitality with a cash-out of imputed equity in the portfolio. A&R will leverage the cash-out proceeds realized as a result of this execution to recapitalize the equity from its assets and to serve as a key driver for its roll-up strategy to launch its own LP-GP fund.

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Inside The Story

A&R Hospitality's Patel

About Lisa McDuffie

Lisa McDuffie arrives at ConnectCRE via REALTOR® world, where she served for nearly two decades as communications director for one of the nation’s largest REALTOR® organizations. She supported two membership-elected presidents who were commercial real estate practitioners, and managed the communications initiatives of the organization’s commercial special interest group. When not following the latest commercial real estate news, Lisa is zeroed in on her charismatic off-the-track thoroughbred as she makes the transition from an utterly failed racehorse to a lovely show hunter.

  • ◦Financing
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