KBRA Affirms All Ratings for INTOWN 2022-STAY

KBRA affirms all outstanding ratings for INTOWN 2022-STAY, a CMBS single-borrower transaction. The affirmations follow a surveillance review of the transaction, which has exhibited improved performance since last review and securitization. However, the magnitude of the change in KNCF and KLTV does not warrant rating adjustments at this time.

The transaction is secured by a $1.20 billion first-lien whole mortgage loan backed by a portfolio of 196 extended-stay lodging properties with nearly 25,000 keys in 22 states. The hotels operate under the InTown Suites (188 hotels) and UpTown Suites (eight hotels) brands. The floating-rate, interest-only loan is indexed to Term SOFR, has an initial term of two years and allows for three one-year extension options. The loan matures in August and the borrower has indicated it intends to exercise the first 12-month extension option.

KBRA analyzed the cash flow for the properties utilizing information from the trustee and servicer to determine KNCF. The analysis produced a KNCF of $181.8 million and a KBRA value of $1.55 billion ($62,129 per key). The resulting in-trust KLTV is 77.5%, compared to 83.5% at last review and 88.5% at securitization. KBRA maintains a KPO of Perform on the loan.

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