MCR Hotels and Island Capital Group close $260 million refinancing for the Sheraton New York Times Square

 

Andrew Farkas

 NEW YORK, NY- MCR Hotels (“MCR”), Island Capital Group (“Island”) and JLL’s Hotels & Hospitality group  announced that MCR and Island have closed on a $260 million refinancing of the 1,780-key Sheraton New York Times Square.

 

The four-year, floating-rate loan retires $250 million in outstanding seller-financing that was sourced when MCR Hotels and Island Capital acquired the hotel in April 2022. The new financing was provided by funds managed by affiliates of Fortress Investment Group LLC (“Fortress”).

 Sheraton New York Times Square
Located at 811 7^th Avenue, the 55-story hotel 
 is situated in the heart of Midtown
Manhattan at the northern end
 of the prime Times Square retail corridor.

Andrew Farkas, Managing Member, Chairman and Chief Executive Officer of Island, said, “Successfully refinancing the Sheraton New York Times Square’s loan is a key component of our strategy to help the hotel capture additional market share and ensure it remains a premier destination on a long-term path for continued success. 

"We greatly appreciate both MCR ‘s and JLL’s support and partnership.”

Tyler Morse

“We are pleased to complete the refinancing of the Sheraton New York Times Square,” said Tyler Morse, Chairman and Chief Executive Officer of MCR. 

 

 “The hotel’s performance has rebounded since we acquired the hotel, which we believe is a testament to the strength of New York City’s lodging market. 

 

 "We are looking forward to working with Island and Fortress over the next several years to reinforce the Sheraton’s position as one of Manhattan’s leading hotels.”

Kevin Davis

Located at 811 7^th Ave, the Sheraton New York Times Square is situated in the heart of Midtown Manhattan at the northern end of the prime Times Square retail corridor.

 The hotel is close to numerous NYC tourist attractions, including Radio City Music Hall, The Museum of Modern Art, Central Park, Rockefeller Center and more.

Mark Fisher

The 50-story hotel is one of New York City’s largest by key count and one of the prime event venues in the city. The hotel has 61,800 square feet of meeting space across several floors, and it is one of a few hotels that can accommodate large groups, with a 23,000-square-foot ballroom.

 

 The hotel’s amenities include on-site food and beverage options, including Hudson Market, Starbucks Café and the Library Bar, an expansive fitness center, a dedicated business center that complements meeting venues, on-site parking and a collection of ground floor retailers.

 

Kevin Davis, Americas CEO of JLL’s Hotels and Hospitality group, said, “We are in the midst of a strong recovery across all segments of New York City’s hotel market.

Russell Freed

"This refinancing is indicative of improved debt capital markets sentiment in New York, which we expect will persist as the hotel market continues to benefit from the recovery of group, business transient and foreign travel demand.”

 

The JLL team was led by Kevin Davis, Managing Director Mark Fisher and Analyst Russell Freed. Fried Frank served as legal advisor to MCR and Island.

 

JLL’s Hotels & Hospitality Group has completed more transactions than any other hotels and hospitality real estate advisor over the last five years, totalling $83 billion worldwide.

The group’s 370-strong global team in over 20 countries also closed more than 7,350 advisory, valuation and asset management assignments.

 

Our hotel valuation, brokerage, asset management and consultancy services have helped more hotel investors, owners and operators achieve high returns on their assets than any other real estate advisor in the world.

 

About MCR Hotels

 

·        3rd-largest hotel owner-operator in the United States

·        $5.0 billion portfolio of 150 premium-branded hotels

·        MCR operates 9 Marriott brands, 8 Hilton brands and a number of unflagged independent hotels

·        Over 25,000 guestrooms across 37 states and 107 cities

·        Founded in 2006

·        Offices in New York City, Dallas, Chicago and Richmond, Virginia 

·        7,000 team members across the country

·        Three-time recipient of the Marriott Partnership Circle Award, the highest honor Marriott presents to its owner and franchise partners

·        Recipient of the Hilton Legacy Award for Top Performer

·        For the TWA Hotel at New York’s JFK Airport, MCR won the Development of the Year (Full Service) Award at The Americas Lodging Investment Summit (ALIS), the Urban Land Institute New York Excellence in Hotel Development Award and the American Institute of Architects national Architecture Award, the highest honor given by the AIA

·        Named one of Fast Company’s 10 Most Innovative Travel Companies of 2020 

 

Contact:

 Alli Stent (Semans)

PR, Hotels & Hospitality, Capital Markets

JLL
M +1 330 329 6750

 alli.stent@jll.com

 mcrhotels.com.