$80M non-performing hotel loan portfolio available for purchase
JLL Loan Sales and Hotels & Hospitality are marketing for sale a 1,022-key hotel loan portfolio
April 14, 2021 – JLL’s Loan Sales and Hotels & Hospitality teams announced today that they have been exclusively retained on behalf of a CMBS special servicer to market the sale of a $80 million, non-performing loan portfolio that includes six loans collateralized by full and limited-service hotels, totaling 1,022 keys across five states.
Pre-COVID-19, the loans were performing with a weighted average (WA) debt yield of 11.8% and DSCR of 1.51x, signifying the potential for quicker asset-level recovery in the interest of the buyer. Overall, the portfolio offers ample opportunity for the buyer to invest in a diverse portfolio of hotel assets. Loan characteristics of the portfolio include amortizing, fixed-rate loans, which carry a WA coupon of 5.29%, have seasoned a WA of 80 months and have a WA maturity in July 2024.
The portfolio consists of two full-service and four limited-service hotels located in Lexington, Kentucky; Springfield, Virginia; King of Prussia, Pennsylvania; Indianapolis and Portage, Indiana; and West Coxsackie, New York.
The seller will consider bids for the entire portfolio, any individual loan or combination of loans.
The JLL Loan Sales team representing the seller is led by Managing Directors Sean Ryan and Tom Hall, Vice President Kyle Kaminski and Associate Clayton Ross. The JLL Hotels & Hospitality team is led by Senior Managing Director Adam McGaughy.
“The portfolio offers an attractive opportunity for investors to acquire a diverse set of non-performing loans and get into the rebounding hotels industry,” says Ryan.
“Given the pent-up demand and lack of hospitality product, we expect to see a strong turnout for this offering,” adds Hall. “There is a consensus that for hotels with the right characteristics and locations a quicker recovery should be in sight given the vaccine rollout and hopeful return to normalcy.”
In 2020, JLL’s experienced and committed Loan Sales team closed over $1.4 billion of loan and REO asset sales.
Additionally, according to JLL’s 2021 Hotel Investment Outlook, the global lodging industry is poised to rebound due to the industry’s continued resilience and trends emerged as a result of the COVID-19 pandemic.
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales advisory, debt placement, equity placement or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.
JLL’s Hotels & Hospitality Group has completed more transactions than any other hotels and hospitality real estate advisor over the last five years, totaling $83 billion worldwide. The group’s 350-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.
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JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.6 billion, operations in over 80 countries and a global workforce of more than 91,000 as of December 31, 2020. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.