CitizenM CEO on $685 Million Loan — and What’s Next After Marriott Sale
Photo Credit: The lobby at the Boston Back Bay CitizenM hotel. Marriott International
Skift Take
In the U.S., 14 citizenM hotels have what's essentially a new mortgage and loan provider. J.P. Morgan led the debt facility, with KSL Capital Partners also taking part. It's among the largest hotel financings of the year.
The company that created the CitizenM hotel brand has closed a $685 million debt refinancing four months after selling the brand to Marriott.
The owner is the just-renamed Amsterdam-based company Another Star. It said on Monday it had secured a financing facility from JPMorgan, in partnership with KSL Capital Partners.
Another Star owns and operates 37 CitizenM hotels with about 8,300 rooms. The company sold the CitizenM name to Marriott in July for $355 million, while retaining ownership of the properties. It's now a Marriott franchisee and has 1,300 employees.
CEO Lennert de Jong told Skift that lenders appeared more comfortable with the refinancing because Marriott now backs the brand. Banks had required consent for the sale of the brand to Marriott earlier this year and were "happy for us to make the step because it's making their assets more secure from a commercial perspective," he said.
The transaction was among the largest hotel finan
