KBRA Assigns Preliminary Ratings to HYT 2024-RGCY
2024年8月14日 - 3:12AM
ビジネスワイヤ(英語)
KBRA announces the assignment of preliminary ratings to nine
classes of HYT 2024-RGCY, a CMBS single-borrower
securitization.
The collateral for the transaction is a $620.0 million
non-recourse, first lien mortgage loan that is expected to be
co-originated by Wells Fargo Bank, National Association, Bank of
America, N.A. and German American Capital Corporation. The floating
rate loan is expected to have a two-year initial term with three
12-month extension options and require monthly interest-only
payments. The mortgage loan will be secured by the borrower’s fee
simple interest in the Hyatt Regency Orlando, a 1,641-key, AAA Four
Diamond, full-service convention hotel located on 28.2 acres along
International Drive in Orlando, Florida. The property is
strategically positioned across the street from both phases of the
Orange County Convention Center (OCCC) and is connected by elevated
walkways to both concourses. The hotel’s facilities and amenities
include six food & beverage outlets, over 351,000 sf of meeting
and ballroom space, two outdoor pools, a full-service spa, a
fitness facility, and a business center. The property was built in
1986 and expanded in 2010. Since 2016, the seller has invested
approximately $116.9 million on renovations, which included
guestroom renovations in 2017 and 2018, with spending in recent
years focused on F&B outlets and building infrastructure. Upon
acquisition of the property, the sponsors are planning
approximately $60.0 million ($36,563 per key) of elective
renovations which will upgrade the guestrooms and pool areas. For
the TTM 6/2024 period, the subject property achieved an occupancy
of 79.7% with an ADR of $228.59, resulting in a RevPAR of $182.13.
The property achieved occupancy, ADR and RevPAR penetration rates
of 118.4%, 100.7% and 119.2%, respectively, as of the TTM 6/2024
period.
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, its Methodology for Rating Interest-Only
Certificates in CMBS Transactions, 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 subject of approximately $69.8 million, which is 10.1%
below the issuer’s NCF, and a KBRA value of approximately $715.9
million, which is 31.8% below the appraiser’s as-is value. The
resulting in-trust KBRA Loan to Value (KLTV) is 86.6%. 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.
To access rating and relevant documents, click here.
Click here to view the report.
Methodologies
- CMBS: North American CMBS Property Evaluation Methodology
- CMBS: North American CMBS Single Borrower & Large Loan
Rating Methodology
- CMBS: Methodology for Rating Interest-Only Certificates in CMBS
Transactions
- Structured Finance: Global Structured Finance Counterparty
Methodology
- ESG Global Rating Methodology
Disclosures
Further information on key credit considerations, sensitivity
analyses that consider what factors can affect these credit ratings
and how they could lead to an upgrade or a downgrade, and ESG
factors (where they are a key driver behind the change to the
credit rating or rating outlook) can be found in the full rating
report referenced above.
A description of all substantially material sources that were
used to prepare the credit rating and information on the
methodology(ies) (inclusive of any material models and sensitivity
analyses of the relevant key rating assumptions, as applicable)
used in determining the credit rating is available in the
Information Disclosure Form(s) located here.
Information on the meaning of each rating category can be
located here.
Further disclosures relating to this rating action are available
in the Information Disclosure Form(s) referenced above. Additional
information regarding KBRA policies, methodologies, rating scales
and disclosures are available at www.kbra.com.
About KBRA
Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit
rating agency registered with the U.S. Securities and Exchange
Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is
registered as a CRA with the European Securities and Markets
Authority. Kroll Bond Rating Agency UK Limited is registered as a
CRA with the UK Financial Conduct Authority. In addition, KBRA is
designated as a designated rating organization by the Ontario
Securities Commission for issuers of asset-backed securities to
file a short form prospectus or shelf prospectus. KBRA is also
recognized by the National Association of Insurance Commissioners
as a Credit Rating Provider.
Doc ID: 1005495
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version on businesswire.com: https://www.businesswire.com/news/home/20240813609173/en/
Analytical Contacts
Patrick McQuinn, Senior Director (Lead Analyst) +1 646-731-2445
patrick.mcquinn@kbra.com
Michael Brown, Managing Director +1 646-731-2307
michael.b.brown@kbra.com
Nitin Bhasin, Senior Managing Director, Global Head of CMBS
(Rating Committee Chair) +1 646-731-2334 nitin.bhasin@kbra.com
Business Development Contact
Andrew Foster, Director +1 646-731-1470
andrew.foster@kbra.com