Morgans Hotel Group, the operator and 50% owner of the London joint venture that owns the Sanderson and St Martins Lane hotels, said it has signed a £100 mln (EUR 118 mln) loan with Aareal Bank to refinance the mortgage debt secured by the two hotels. The new loan matures in July 2015. The old facility was scheduled to mature in November 2010. Jones Lang LaSalle Hotels advised the joint venture in the refinancing process.
Morgans Hotel Group, the operator and 50% owner of the London joint venture that owns the Sanderson and St Martins Lane hotels, said it has signed a £100 mln (EUR 118 mln) loan with Aareal Bank to refinance the mortgage debt secured by the two hotels. The new loan matures in July 2015. The old facility was scheduled to mature in November 2010. Jones Lang LaSalle Hotels advised the joint venture in the refinancing process.
Marc Gordon, President of Morgans Hotel Group, commented: '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.'
Giorgio Manenti, Executive Vice President of 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.'
