Access Point Financial Closes on Acquisition of Two Controlling Tranches in Citibank's $631M CMBS Refi of Hotel Portfolio

Access Point Financial (APF) announced today the successful closing of a $90M investment in Citibank's recent $631.5M CMBS SASB hotel portfolio refinance (HTL 2024-T53). This investment solidifies APF's position as a pivotal player in the hospitality financing landscape.

The transaction, which Citi arranged for a joint venture between MCR Hotels and Building and Land Technology, included APF acquiring two bond tranches of the capital stack, totaling $90M.

"This showcases our ability to provide innovative and structured capital solutions for hotel owners directly and debt issuers alike," said Michael I. Lipson, CEO of Access Point Financial. "Our hotel-focused debt platform gives us unique insight into the space and the ability to effectively and efficiently underwrite these transactions. We want the market to know we are open for business. We are creative and aggressive, and we have range, from being able to execute a $10M bridge loan to a transaction as large and complicated as this."

The portfolio is comprised of 53 limited and select service hotels, including 33 Marriott-branded and 20 Hilton-branded properties. The properties are located in 14 states, primarily in the Sunbelt region.

"We have a deep expertise and understanding of these types of hotel assets, which made APF a perfect fit for Citi and the borrower," said Jon Kapit, Managing Director of Access Point Financial. "By APF acquiring the last dollar risk in the offering, it sent a strong signal to the rest of the potential bond investors on the compelling nature of the opportunity that a hospitality specialist was willing to hold that piece."

In the current economic and interest rate environment, APF continues to find creative ways to provide solutions to address the needs of the various players in the hotel and capital markets space through direct lending and full capital stack solutions.