MetLife provides $150m loan on Boston hotel

The 10-year loan with a fixed interest rate of 4.25 percent went to Chesapeake Lodging Trust, which expects to use the financing to repay outstanding borrowings.

MetLife has provided a $150 million loan to refinance the 502-room Hyatt Regency Boston hotel.

Hyatt Regency Boston
Hyatt Regency Boston

The 10-year loan with a fixed interest rate of 4.25 percent was secured by Chesapeake Lodging Trust.

“We are pleased to take advantage of the historically low interest rate environment and extend the weighted-average maturity of our debt to 5.5 years,” said Douglas Vicari, EVP and CFO of the real estate investment trust, in prepared remarks.

“The appreciation in and shareholder value created by the Hyatt Regency Boston, Chesapeake’s first acquisition and a key asset in our portfolio, allowed us to generate significantly greater proceeds than our previous $95 million mortgage loan, which was prepaid earlier this year.”

Chesapeake purchased the 1 Avenue de Lafayette building from the Hyatt Corporation for $112 million in March of 2010.

A group of lenders led by Wells Fargo had provided a $115 million loan on the property in July of that year; and Goldman Sachs provided a subsequent $95 million financing in June of 2011, county records show.

MetLife’s real estate investment group originated $14.3 billion in global commercial real estate loans in 2015, surpassing the previous year’s record high of $12.1 billion. Chesapeake Lodging Trust focuses on high-end lodging properties and owns 22 US hotels.