(CMR) London & Regional (L+R) Hotels has secured an extension for a commercial mortgage-backed securities (CMBS) loan on its beachfront Grand Cayman Marriott Resort property, which experienced major drops in visitors due to strict Cayman Islands COVID-19 travel rules that were in place from March 2020 to April 2022.
According to the Commercial Observer, the London-based global real estate investment firm received a three-year extension for its $80 million CMBS refinance loan supplied by Cantor Commercial Real Estate in 2017 that matured in July 2022. The extension to July 2025 on the fixed-rate debt is geared toward enabling the hotel to stabilize its cash flow and deploy fresh equity to renovate the property.
Richard Fischel, partner at Brighton Capital Advisors (BCA), a CMBS advisory firm that negotiated the extension with the loan’s special servicer, Midland Loan Services, said:
“The Caymans came back late because of a very restrictive entrance policy for tourism into 2022, and this place was running at a severely impacted occupancy rate. This was driven by the COVID tail and how the Caymans and various other islands in the Caribbean handled tourism.”