MCR Hotels and Island Capital Group have closed a $260 million refinancing deal for the Sheraton New York Times Square.
The four-year, floating-rate loan retires $250 million in outstanding seller-financing that was sourced when MCR Hotels and Island Capital acquired the hotel in April 2022.
The new financing was provided by funds managed by affiliates of Fortress Investment Group.
The 50-story hotel is one of New York City’s largest by key count.
JLL advised on the deal.
What they said
Andrew Farkas, CEO of Island, said: “Successfully refinancing the Sheraton New York Times Square’s loan is a key component of our strategy to help the hotel capture additional market share and ensure it remains a premier destination on a long-term path for continued success. We greatly appreciate both MCR ‘s and JLL’s support and partnership.”
“We are pleased to complete the refinancing of the Sheraton New York Times Square,” said Tyler Morse, Chairman and Chief Executive Officer of MCR. “The hotel’s performance has rebounded since we acquired the hotel, which we believe is a testament to the strength of New York City’s lodging market. We are looking forward to working with Island and Fortress over the next several years to reinforce the Sheraton’s position as one of Manhattan’s leading hotels.”
Kevin Davis, Americas CEO of JLL’s Hotels and Hospitality group, said: “We are in the midst of a strong recovery across all segments of New York City’s hotel market. This refinancing is indicative of improved debt capital markets sentiment in New York, which we expect will persist as the hotel market continues to benefit from the recovery of group, business transient and foreign travel demand.”