Latest news: Mission Hill's $440M CMBS refi; new luxe in San Antonio; notable acquisition loans

Mission Hill’s $440M CMBS refi. Denver-based Mission Hill Hospitality, which is KSL Capital’s select-service platform, is refinancing 24 of its 33 hotels with a $440 million CMBS loan, according to a note from Michael Bellisario, analyst from R.W. Baird. The five-year floating-rate loan is expected to bear interest at SOFR + 275 basis points, which represents an 11.3% NOI debt yield. According to Bellisario, the portfolio is forecasted to generate $128 RevPAR, nearly 36% hotel EBITDA margins, and $18,500 of hotel EBITDA per key this year, which are slightly higher performance metrics compared to Apple’s and Summit’s select-service portfolios.  

Virk closes loan in Washington. Portland, Oregon-based Virk Hospitality Group has closed a $9.8 million acquisition loan for the extended-stay Sonesta ES Suites in Vancouver, Washington. Arriba Capital facilitated the loan.

Seven Hills closes in Massachusetts, Newton, Massachusetts-based Seven Hills Realty Trust has closed a $37 million first mortgage loan secured by the 168-key SpringHill Suites in Revere, Massachusetts. The property offers ocean views, is close to Boston Logan Airport, and has strong year-round demand drivers. The loan has an initial term extending through July 2026 and three 12-month extension options.

Zachry adds in San Antonio. San Antonio, Texas-based Zachry Hospitality is opening in March the luxury $185 million, 200-key The Monarch San Antonio. The 17-story property is situated in the northwestern portion of the Hemisfair area of downtown San Antonio and will have more than 15,000 sq. ft. of flexible event space.

ARC, Prosper adding Tampa. Tampa, Florida-based ARC Realty Group and Prosper Group have closed on the second parcel for $13.5 million within the three-parcel, one-acre assemblage for Hotel ORA + Private Residences, a $675 million, mixed-use development coming to downtown Tampa. The newly acquired site at 205 N. Brush St. will join the parcel at 1101 E. Jackson St., which the joint venture closed on in summer 2024. The third and final parcel is scheduled to close soon. All pre-development costs, including land acquisitions to date, have been funded by the developers with no debt. The milestone comes on the heels of strong sales momentum, with the developers recently surpassing $200 million in pre-sale contracts nine months after launching sales.

Kerten adds in KSA. Dublin-based Kerten Hospitality is expanding its presence in the Kingdom of Saudi Arabia with Cloud 7 Al Murjan Island Resort – Dammam, a new addition to Saudi Arabia’s Eastern Province waterfront. The Cloud 7 Al Murjan Island Resort - Dammam will feature 74 overwater chalets and will also be home to Nyssa Beach, a ladies-only beach club offering a spa, wellness and fitness facilities, elegant salon services, and curated social and workspaces.

UAE is injecting $6B into African tourism. As Africa records fast global tourism growth, UAE leadership has announced it is set to inject $6 billion into the continent’s travel and hospitality sector, a move expected to create 70,000 new jobs.

JD Properties acquires in Australia. Singapore-based JD Properties, through its investment and asset management arm High Street Holdings, has acquired the 102-key George Williams Hotel in Brisbane, Australia, from Australia-based YMCA Queensland for an undisclosed amount. The property will be rebranded as George Hotel Brisbane and adds to High Street Holdings’ Australian portfolio, which includes the 120-key Rydges Perth Kings Square, 167-key The Miller Hotel, and 108-key Kennigo Hotel Brisbane. YMCA Queensland acquired the property for AUD2.6 million in 1996 from Australia-based Commonwealth Bank of Australia.