Hotels

MCR acquired the 725-room hotel property in a joint venture with the Island Capital Group and Three Wall Capital.

Madison Realty Capital provided the funding, which will be used for a renovation and repositioning plan.

Companies may engage in asset dropdown, transferring assets to newly created subsidiaries not covered by the company's existing lending facilities.

Corporate travel is moving more slowly and there is unlikely to be a "rubber band" back to pre-pandemic levels.

The company sold Le Meridien San Francisco and Hotel Adagio at a 6.1% cap rate on 2019 net operating income.

The company joins with Cain International to transform a 17.5-acre site adjacent to the Beverly Hilton and Waldorf Astoria Beverly Hills into a three-building condo and hotel complex.

Demand drivers are anticipated to change during the second half of this year as post Labor Day corporate travel should increase, and with schools reopening leisure travel will slow down.

The number of loans on lenders' watchlist "shows the continuing uncertainty and the tenterhooks that the market hangs on when looking at the future performance of CRE properties."