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MCR Refinances 16 Hotels for $333M
MCR has refinanced a 16-hotel portfolio for $333 million, generating $51 million in net proceeds. In less than three years, MCR doubled the portfolio’s net operating income from $15 million to $36 million, reflecting a 9.4% cap rate on their initial investment.
MCR utilizes a data-driven approach to measure 112 items daily across its 150 hotels to streamline operations. The portfolio, acquired primarily in 2020-2021 across 11 states, includes Hilton and Marriott brands. The refinancing, secured in a SASB CMBS transaction, replaces the original debt of $268 million. Deutsche Bank Securities and BMO Capital Markets led the transaction, with Eastdil Secured LLC advising MCR.
“Securing a refinancing in today’s challenging debt environment demonstrates MCR’s success as an owner-operator,” says Tyler Morse, chairman and CEO of MCR. “We bought good hotels at the right time, in the right markets, and implemented our business strategies to boost operating performance.”
- ◦Financing
