Alexico Group has struck a deal to refinance its hotel in Manhattan's Upper East Side neighborhood for $345 million.
The bank sheet financing was led by Deutsche Bank, with other financial institutions, including BDT & MSD Partners and J.P. Morgan Chase, participating, according to a report from the Commercial Observer. Walker & Dunlop was involved with the negotiation of the refinancing of the property, The Mark Hotel.
The deal comes just months after Bloomberg reported that Alexico was mulling an offer of roughly $1 billion to sell the property. It's unclear who made the proposal.
Also, the CO reported that The Mark Hotel was last refinanced for $335 million in 2024, which included a $35 million mezzanine loan and a $300 million CMBS mortgage with a two-year term.
The Mark Hotel, which ranks on The World's 50 Best Hotels list, offers 106 rooms and 47 suites. The property features a special events area, multiple restaurants, a bar and a shop.
In Manhattan, Alexico also owns major condo buildings, including Grand Beekman, 165 Charles Street and 56 Leonard.
For 2025, it was a strong year for hotels, despite the economic headwinds and geopolitical uncertainty. A LW Hospitality Advisors survey found that transaction volume totaled over $14.3 billion across roughly 58,900 hotel rooms. Volume grew by about five percent year-over-year, while the number of trades surged by 10 percent over the same period. However, the average deal size contracted by almost five percent.
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