KBRA Assigns Preliminary Ratings to INTOWN 2025-STAY
3 Mar 2025 | New York
KBRA announces the assignment of preliminary ratings to five classes of INTOWN 2025-STAY, a CMBS single-borrower securitization.
The collateral for the transaction is a $1.45 billion floating rate, interest-only mortgage loan. The loan is expected to have an initial two-year term with three, one-year extension options and require monthly interest-only payments. The loan will be secured by the borrowers’ fee simple interests in 195 hotels located in 22 states. For the 2024 period, the portfolio’s occupancy was 80.5% with an average daily rate (ADR) of $51.27, resulting in revenue per available room (RevPAR) of $41.29. As of 2024, the portfolio achieved weighed average occupancy, ADR and RevPAR penetration rates of 123.7%, 80.9% and 100.8%, respectively.
KBRA’s analysis of the transaction included a detailed evaluation of the property’s cash flows using our North American CMBS Property Evaluation Methodology, and the application of our North American 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 $175.6 million, which is 9.6% below the issuer’s NCF, and a KBRA value of approximately $1.51 billion, which is 29.7% below the aggregate of the appraiser’s individual as-is values for each property. The resulting in-trust KBRA Loan to Value (KLTV) is 96.0%. 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 properties, and legal documentation review.
Note: Loan amount updated from $1.14 billion to the correct amount of $1.45 billion in the second paragraph.
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