Blackstone’s Motel 6 portfolio gets $685M CMBS loan

Goldman Sachs, JPMorgan provide two-year, floating-rate loan

Los Angeles /
Sep.September 03, 2021 09:00 AM
G6 Hospitality CEO Rob Palleschi and Motel 6 San Jose South, one of the largest assets in the portfolio (G6)
G6 Hospitality CEO Rob Palleschi and Motel 6 San Jose South, one of the largest assets in the portfolio (G6)

Blackstone is refinancing a portfolio of 106 Motel 6 and Studio 6 hotels across the country.

The firm’s G6 Hospitality secured a $685 million commercial-backed securities loan from Goldman Sachs and JPMorgan to refinance 98 Motel 6 hotels and eight Studio 6 hotels, which offer extended stays, according to a report from S&P Global Ratings.

The two-year, floating-rate CMBS loan will mature in September 2023, the report said. It has two one-year extension options and will be interest only for the entire period.

The CMBS loan, along with a $300 million term loan, will refinance $725 million in prior CMBS and mezzanine loans, pay off $222.8 million in credit facilities and fund $16.8 million in closing costs, according to the report.

Though spread out across 12 states, the majority of the loan will go towards properties in California, including the Motel 6 LAX and Motel 6 in San Jose — the two largest assets in the portfolio.

Around 8 percent of the loan will go to properties in Florida, while 6.7 percent will go to hotels in Arizona.

Though the pandemic has crushed the hotel sector, economy lodging has fared better, given low prices, drive-to locations and lower staffing needs, the report added.

G6 Hospitality last secured financing for Motel 6 hotels in 2017, when it issued over $4 billion in CMBS loans.

Since then, the firm has sold 354 out of its 460 hotels, which were located in “inferior, lower price point markets,” according to S&P Global Ratings.





    Related Articles

    arrow_forward_ios
    A photo illustration of MemorialCare Health's Barry Arbuckle along with the current site at 654 Camino De Los Mares in San Clemente (top) and a rendering of the planned senior housing redevelopment (bottom) (Getty, Google Maps, MemorialCare Health)
    MemorialCare to convert shuttered San Clemente Hospital into senior housing
    MemorialCare to convert shuttered San Clemente Hospital into senior housing
    8209 Sepulveda Boulevard in Los Angeles (Google Maps, Getty)
    Nonprofit to build 91-unit apartment complex in Van Nuys
    Nonprofit to build 91-unit apartment complex in Van Nuys
    Real Estate Development Associates' Jason Krotts and Bill Goltermann; South Ontario Logistics Center, Euclid and Merrill Avenues, Ontario (Real Estate Development Associates, Getty)
    Real Estate Development Associates eyes 2.9M sf warehouse hub in IE
    Real Estate Development Associates eyes 2.9M sf warehouse hub in IE
    Prologis' Hamid Moghadam and rendering of 1716 E. 7th Street (Prologis, Getty, Jackson Liles)
    Prologis to build 8-acre studio production campus in DTLA
    Prologis to build 8-acre studio production campus in DTLA
    J.P. Morgan's Mary Callahan Erdoes and Water Garden at 1620 26th Street in Santa Monica (Getty, Water Garden LA)
    Water Garden asking price: $1.4B
    Water Garden asking price: $1.4B
    Diane Shammas and rendering of proposed Ford dealership (Pitzer College, Felix Chevrolet, Getty)
    Shammas family plans New Ford dealership in DTLA
    Shammas family plans New Ford dealership in DTLA
    Burnham Ward Properties' Bryon Ward, Bellwether Financial Group's Joe Ueberroth and R.D. Olson's Bob Olson with a rendering of the redeveloped Dana Point Harbor (Burnham Ward, Bellweather Financial Group, RDO Development, Dana Point Harbor Partners)
    OC developers unveil “coastal vintage” look for Dana Point Harbor
    OC developers unveil “coastal vintage” look for Dana Point Harbor
    Map of Bloomington Business Park, bordered by Santa Ana, Jurupa, Maple Avenue, Linden and Alder avenues, Bloomington (San Bernardino County, Getty)
    Howard Industrial wins OK for 213-acre industrial park in IE
    Howard Industrial wins OK for 213-acre industrial park in IE
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...