Morgans Hotel Group Co, the operator and 50% owner with an affiliate of Walton Street Capital of the Sanderson and St Martins Lane, has announced that it has successfully refinanced in full the mortgage debt secured by the hotels with a new loan maturing in July 2015.
The new lender, Aareal Bank, is a true expert in hotel financing and among the very few active across Europe over the past year. Jones Lang LaSalle Hotels advised the joint venture in the refinancing process.
Giorgio Manenti, Executive Vice President Jones Lang LaSalle Hotels said: "This ground-breaking deal is of great encouragement to the market, proof that competitive financing is achievable on the back of solid business fundamentals. By evidencing the strength of the sponsors, the prime location of the assets and the ability of the operator to drive both revenue and profit, the team was able to help secure Aareal as the new lender."
Marc Gordon, President of Morgans Hotel Group said: "During a period where there are few new hotel mortgage loans, this financing highlights the quality of MHG's assets and reinforces our track record of securing attractive financing for our hotels. We appreciate the confidence our new lender, Aareal Bank, has shown in our London properties and our team's ability to operate them efficiently and successfully. As with our others in the recent past, this refinancing will allow us to continue to focus on delivering a truly unique guest experience and will enable us to build on the long term value and financial performance of Sanderson and St Martins Lane."