Morgan Stanley has refinanced the debt secured against London & Regional’s Atlas hotel portfolio through a five-year, floating-rate loan.
The size of the debt package was not revealed, although CoStar News reported that it was in the region of £400 million (€553 million), implying a loan-to-value ratio of around 69 percent.
The Atlas portfolio comprises 48 hotels totalling around 5,800 rooms located throughout England, Scotland and Wales. L&R bought the platform in 2016 from Lone Star for £575 million and has been executing a significant expansion plan since its acquisition.
The purchase of Atlas represented the first budget addition to L&R’s existing portfolio of luxury hotels, which comprised 6,600 rooms across Europe and the Caribbean.
In the portfolio refinancing, L&R was advised by HFF’s debt placement team, led by senior managing director Michael Kavanau and director Brad Greenway.