Gulf Shores, AL-based A&R Hospitality has secured a $63-million CMBS loan to refinance its portfolio of nine limited/select and extended-stay hotels located in Gulf Coast region of AL and FL.

Rushi Shah and Prabhat of Mag Mile Capital arranged the financing on behalf of the borrower, a repeat client.

Terms

  • Assets: 724 rooms
  • Total Loan Amount: $63 million
  • Loan-to-Value: 60%
  • Loan Type: CMBS cash out
  • Interest Rate: 6.06% (Term SOFR swaps + 360 bps)
  • Amortization: 30 years
  • Loan Terms: 10 years; four years interest only

Properties

  • Beachside Resort Hotel, Gulf Shores, AL
  • Fairfield Inn & Suites, Orange Beach, AL
  • Home2 Suites Daphne, AL
  • Home2 Suites Mobile, AL
  • Motel 6 Gulf Shores, AL
  • Quality Inn Gulf Shores, AL
  • Red Roof Inn Gulf Shores, AL
  • Red Roof Inn Pensacola, FL
  • Staybridge Suites Gulf Shores, FL

“Rushi Shah and Mag Mile put together a syndicate of three lenders: Société Générale, Bank of Montreal, and Goldman Sachs,” said Ken Patel, CEO of A&R Hospitality. “This created strong demand for the loan in the secondary market.”

The transaction provided A&R Hospitality with a cash-out of imputed equity in the portfolio. A&R will leverage the cash-out proceeds realized as a result of this execution to recapitalize the equity from its assets and to serve as a key driver for its roll-up strategy to launch its own LP-GP fund.

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