WASHINGTON, DC—Strategic Hotels & Resortshas closed on a $120 million limited recourse loansecured by its Four Seasons Washington DC hotel torefinance the $130 million previously encumbering the property.
The REIT reports that the interest rate is based on a floatingrate of LIBOR plus 225 basis points. The loan has a three-yearinitial term with two, one-year extension options. Deutsche BankSecurities originated the financing.
During the REIT's most recent earnings call in May CEORip Gellein noted that the Four Seasons in DC experienceda 12% RevPAR decline year over year – but went on to say that wasprimarily a "reflection of a very tough comparison to the firstquarter of last year when the hotel was the beneficiary of thepresidential inauguration that added more than $650,000 in revenuein January alone as a result of five-day average rates between$1,300 and $1,900 a night."
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
