Pebblebrook Hotel Trust has refinanced its mortgage loan for Margaritaville Hollywood Beach Resort in the US state of Florida.
The US-based publicly traded hotel trust refinanced a $140m loan, which carries a three-year initial term and two one-year extension options, subject to some conditions.
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It executed interest rate swaps to set a fixed interest rate of 7% for the entire loan duration.
The payoff amount for the remaining $21.5m from the earlier $161.5m CMBS loan secured by the Margaritaville Hollywood Beach Resort was funded from cash on hand by Pebblebrook Hotel Trust.
Pebblebrook Hotel Trust co-president and chief financial officer Raymond D. Martz said: “We are extremely pleased with the favourable terms of this loan in a challenging financing market.
“This refinancing extends our debt maturities and preserves additional liquidity for debt paydowns and other strategic opportunities.”
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By GlobalDataWells Fargo Securities acted as the sole lead arranger in forming a lender syndicate for the financing.
Due to the refinancing of the resort, the effective weighted average interest rate of the Pebblebrook Hotel Trust’s total outstanding debt and convertible notes is about 4.3%, with 78% of its debt locked at fixed interest rates and 22% at floating interest rates.
Located in Hollywood, Florida, Margaritaville Hollywood Beach Resort features 369 guestrooms offering waterfront views.
It also includes dining options, a spa, a fitness facility, a pool and a range of activity options.
It hosts both social and business gatherings at its indoor and outdoor event venues overlooking the Atlantic Ocean.
In May, Pebblebrook Hotel Trust closed the sale of the 125-room Hotel Vintage Seattle in Seattle, Washington, for $33.7m.
Pebblebrook Hotel Trust is a publicly traded real estate investment trust with a portfolio of 47 hotels and over 12,200 guest rooms in 13 resort and urban markets.
