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US: Extended Stay America has secured a $1.9 billion refinancing loan from a consortium of six lenders led by JPMorgan Chase.
The commercial mortgage-backed security (CMBS) loan will refinance debt tied to 220 properties, representing 24,560 rooms located across 33 states.
The loan structure is expected to have a two-year initial floating-rate term, with three one-year extension options. Monthly interest-only payments will be calculated based on the Secured Overnight Financing Rate (SOFR) plus approximately 2.5 per cent.
Proceeds will refinance $1.8 billion of debt – part of a broader $4.6 billion securitisation that originally included 560 properties in 2021.
The financing is understood to represent a commitment at this stage, with lenders reportedly extending the maturity on existing debt facilities to mid-2026.
Extended Stay America was acquired by a joint venture between Blackstone and Starwood for $6 billion in 2021. The JV contributed around $1.64 billion in equity towards the acquisition, supported by a $4.65 billion loan from JPMorgan Chase, Citi and Deutsche Bank.
Highlights:
• Extended Stay America has secured a $1.9 billion CMBS refinancing led by JPMorgan Chase
• The loan covers 220 hotels across 33 states, representing 24,560 rooms
• Financing includes a two-year floating-rate term with three extension options and interest-only payments based on SOFR of 2.5 per cent
• Proceeds will refinance $1.8 billion in debt tied to a previous $4.6 billion securitisation
