Blackstone Secures $428.5M Refinance Deal for 23-Hotel Portfolio

Morgan Stanley and Société Générale have recently closed a $428.5 million refinance deal for a portfolio of 23 hotels owned by Blackstone. The loan, with a term of two years, features floating rates and includes three one-year extension options. Sources indicate that this loan is being securitized in the BX 2024-BRVE commercial mortgage-backed securities (CMBS) deal.

Portfolio Overview

The hotel portfolio comprises 4,002 rooms spread across 10 states, primarily in urban markets. The transaction, which closed on April 9, represents a significant financial maneuver in the hospitality sector. CBRE's Tom Traynor, Tom Rugg, Lawrence Britvan, Mark Finan, and Michael Straw played key roles in negotiating the debt.

Asset Breakdown

The largest asset in the deal is the 1,260-key Hyatt Regency Atlanta. The remaining 22 hotels are categorized as limited service, select service, and extended stay establishments, located across various regions of the United States. Notably, Blackstone acquired the Hyatt Regency Atlanta, the second-largest hotel in the city, in September 2019, as reported by the Atlanta Business Chronicle.

Geographic Representation

The portfolio is geographically diverse, with the top five states represented being Georgia (43.7 percent), Florida (14.7 percent), Illinois (11.1 percent), Colorado (10.4 percent), and Utah (4.4 percent).

No Official Comments

Despite inquiries, Blackstone, CBRE, and Morgan Stanley have chosen not to comment on the transaction. Similarly, Société Générale officials were not immediately available for comment.