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Deals & Dealmakers

Mack funds $500M in loans to refinance Qatari-owned hotels

Mack Real Estate Credit Strategies has funded $503 million in refinancing for three Qatari-owned hotels.

Holliday Fenoglio Fowler brokered the deal for three prominent hotels totaling 1,049 rooms in New York, Miami and Washington, D.C.

HFF team worked on behalf of borrower Al Rayyan Tourism Investment Company (ARTIC), to place three floating-rate loans with Mack Real Estate Credit Strategies: a $290 million loan for The Manhattan at Times Square Hotel, a $132 million loan for the St. Regis Bal Harbour Resort and an $81 million loan for the St. Regis Washington, D.C. Each loan carries a four-year term with one one-year extension.

Originally developed in 1952, The Manhattan at Times Square Hotel houses 685 rooms and 9,100 s/f of retail in its 22 stories. ARTIC will continue to operate the hotel on an as-is basis while it finalizes plans for a best-in-class mixed-use tower.

Once redeveloped, the nearly 1,500 ft. tall building will include 44,000 s/f of LED signage wrapping the base, 134,000 s/f of retail space, 250 hotel rooms and 150 luxury condominium residences.

The St. Regis Bal Harbour is a 27-story luxury hotel with 192 hotel guest rooms and 24 condo-hotel units. The Miami hotel features the Remède Spa, two beach and oceanfront pools, a fitness suite, business center, 11,200 s/f of meeting space plus a 7,800 s/f ballroom and multiple food and beverage outlets, including Atlantikós, BH Burger Bar, The St. Regis Bar & Sushi Lounge and La Gourmandise.

The St. Regis Washington, D.C. is a 172-room luxury hotel that was originally constructed in 1926 as the Carlton Hotel. Listed on the National Register of Historic Places, the hotel features 25 suites with butler service and complimentary house car.

The HFF debt placement team representing the borrower consisted of senior managing director and head of HFF’s hotel group Daniel C. Peek; managing directors Danny Kaufman and Christopher Peck; senior directors Jeff Bucaro, Scott Wadler and Chris Hew; and associate Nicole Aguiar.

On behalf of Al Rayyan Tourism Investment Company, Tarek M. El Sayed, managing director and CEO commented: “As one of the leading international hospitality investment companies, our strategy is focused on increasing the value of our hotel portfolio by improving operational efficiency and quality of service while enhancing and developing the properties we acquire to optimize and build new revenue streams.

“The refinancing announced today reflects the quality of our asset base and further reduces our financing costs as we execute on that strategy.

“This will help reinforce the market leading positions of our iconic luxury hotels in New York, Chicago, Miami and Washington, D.C., which form the core of our current U.S. portfolio, to provide an even stronger platform for expansion as we continue to seek more investment opportunities across the U.S.”

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