KBRA Assigns Preliminary Ratings to HTL 2024-T53
1 Apr 2024 | New York
KBRA announces the assignment of preliminary ratings to six classes of HTL 2024-T53, a CMBS single-borrower securitization.
The collateral for the transaction is a $631.5 million fixed rate, interest-only mortgage loan. The loan has a three-year term and requires monthly interest-only payments. The loan will be secured by the borrowers’ fee simple interests in 53 hotels, all located in 14 states. For the TTM 1/2024 period, the portfolio’s occupancy was 69.2% with an average daily rate (ADR) of $124.31, resulting in revenue per available room (RevPAR) of $86.03. As of TTM 1/2024, the portfolio achieved weighed average occupancy, ADR and RevPAR penetration rates of 106.9%, 109.1% and 118.8%, respectively.
KBRA’s analysis of the transaction included a detailed evaluation of the properties’ cash flows using our U.S. CMBS Property Evaluation Methodology and the application of our U.S. CMBS Single Borrower & Large Loan Rating Methodology. In addition, KBRA also relied on its Global Structured Finance Counterparty Methodology for assessing counterparty risk in this transaction and its ESG Global Rating Methodology, to the extent deemed applicable.
The results of our analysis yielded a KBRA net cash flow (KNCF) for the portfolio of approximately $58.1 million, which is 9.6% below the issuer’s NCF, and a KBRA value of approximately $532.0 million, which is 43.2% below the aggregate of the appraiser’s individual as-is values. The resulting in-trust KBRA Loan to Value (KLTV) is 118.7%. In our analysis of the transaction, we also reviewed and considered third party engineering, environmental, and appraisal reports, the results of our site inspection of the property, and legal documentation review.
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