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$226.6 million CMBS Mortgage and Mezzanine Debt for Multistate Hotel Portfolio

A team of Hodgson Russ attorneys, led by Christofer Fattey, Kenneth Friedman, and Richard Campbell represented an international hotel operator in the closing of a highly complex financing package involving $226.6 million in new CMBS mortgage and mezzanine debt. The transaction involved 17 hotels in 11 states and included the defeasance of $100 million of existing CMBS indebtedness, a major restructuring of the existing hotel owner and management companies, the formation of 20 new entities, the movement of 11 hotel franchises and 7 management agreements, and the buyout of a strategic partner. JPMorgan provided the financing and was represented by Kelley Drye & Warren LLP.  The Hodgson Russ team included assistance from Craig Fischer and Matthew Scherer (Corporate & Business Law); Kimberly Sayoc, Amy Fitch, Michael Reyen, Seth Pullen, and Jennifer Anthony (Real Estate & Finance); David Stark, Joseph McKernan, and James Thoman (substantive non-consolidation, enforceability and defeasance opinion letters); Courtney Scanlon and Betsy Mills (restructuring, entity formation and UCC support); Richard Kaiser and Ryan Murphy (ERISA); and William Turkovich (Tax). The transaction was accomplished pursuant to an accelerated schedule and completed in approximately 60 days.