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US Hotel Active Lenders: Four Large Banks Finance Brookfield-Watermark Deal

MetLife Funds Orlando Autograph Buy; Hotel Marcel Gets C-PACE Money; and More
The Sawgrass Marriott Golf Resort & Spa is one of 24 properties included in Brookfield's acquisition of Watermark Lodging Trust. (CoStar)
The Sawgrass Marriott Golf Resort & Spa is one of 24 properties included in Brookfield's acquisition of Watermark Lodging Trust. (CoStar)
Hotel News Now
November 10, 2022 | 2:58 P.M.

This roundup features the latest financing of U.S. hotel industry deals and projects.

Acquisition of Watermark Lodging Trust

Lender: Citigroup, Bank of America, JPMorgan Chase, Wells Fargo
Borrower: Brookfield
Value: $3.8 billion
Date of Loan: Oct. 21
Takeaway: Brookfield announced plans to acquire the nontraded REIT in May and financed the acquisition with a floating-rate CMBS loan, collateralized by 16 Watermark properties. The portfolio includes 24 hotels and resorts with 7,916 rooms. The financing has a projected debt yield of 9.1%.

Castle Hotel, Autograph Collection by Marriott

Lender: MetLife, brokered by Berkadia
Borrower: Banyan Investment Group
Date of Loan: Oct. 17
Location: Orlando, Florida
Takeaway: The three-year loan has two one-year extension options. The property was sold by Waramaug Hospitality and Contrarian Capital Management.

Hotel Marcel

Lender: Nuveen Green Capital
Borrower: Becker + Becker
Value: $7 million
Date of Loan: Oct. 20
Location: New Haven, Connecticut
Takeaway: The C-PACE financing carries a 20-year term at a fixed rate.

Dual-Brand Home2 Suites and Tru Property

Lender: Hall Structured Finance brokered by Arriba Capital
Borrower: PA Hospitality
Value: $37.4 million
Date of Loan: Oct. 31
Location: Houston, Texas
Takeaway: The first lien construction loan is for a project expected to break ground before the end of the year and open by late 2024.

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