Jones Lang LaSalle today announced that a Morgans Hotel Group joint venture has completed the refinancing of the Sanderson and St Martins Lane hotels in London. The new credit facility for the two hotels will be a combined senior and mezzanine loan facility through Citigroup International PLC. Jones Lang LaSalle Hotels and the Jones Lang LaSalle Real Estate Investment Banking team in New York arranged the financing as agents for the ownership joint venture.
The full service boutique hotels are owned by a joint venture of Morgans Hotel Group and Burford Holdings Limited and boast 354 rooms. They are both located in Central London.
“Jones Lang LaSalle conducted a comprehensive marketing process that generated strong bids, resulting in a high leverage, low cost financing for the borrower,” said Rick Hollander, executive vice president of Real Estate Investment Banking for Jones Lang LaSalle. “On the back of improving trading fundamentals within the majority of European hotel markets, we are seeing much more aggressive lending.”
“The refinancing of these hotels illustrates the emerging importance of structured debt finance to the hotel investment market,” said Arthur Adler, managing director and CEO-Americas of Jones Lang LaSalle Hotels in New York. “This transaction further reinforces the strength of Jones Lang LaSalle Hotels’ global platform and the firm’s ability to source the best capital solutions for our clients, regardless of the location of the asset and the region of the world from which the capital originates.”
About Jones Lang LaSalle Hotels
Jones Lang LaSalle Hotels, the world’s leading hotel investment services group, provides clients with value-added investment opportunities and advice. In the US, Jones Lang LaSalle Hotels is ranked as the leading transaction advisor for hotel sales over $25 million. In 2004, its global success story includes the sale of 23,103 hotel rooms to the value of US$5.2 billion in 85 cities and advisory expertise on 132,498 rooms to the value of US$27.9 billion across 301 cities. Jones Lang LaSalle Hotels’ services include transactions, mergers and acquisitions, financial advice and capital raising, valuation and appraisal, asset management, strategic planning, operator assessment and selection and industry research. www.joneslanglasallehotels.com
About Jones Lang LaSalle Real Estate Investment Banking
During the past three years Jones Lang LaSalle’s Real Estate Investment Banking (REIB) group has closed over $3.0 billion of debt, mezzanine and equity transactions, many of which with non-traditional capital sources. REIB provides owners and developers with access to equity, mezzanine finance and debt capital with a strong advisory approach. The group’s senior professionals have an average of over 20 years of experience in the institutional real estate capital markets. REIB is not beholden to correspondent lender relationships, thereby ensuring that owner and developer clients obtain the best representation and execution. Jones Lang LaSalle (NYSE: JLL) is the world’s leading real estate services and investment management firm, operating across more than 100 key markets on five continents. For more information visit www.joneslanglasalle.com