Extended Stay is looking to refinance its $2.6 billion, large-loan, hotel CMBS next year, said one source familiar with the deal.
The existing deal which came to market in 2010, Extended Stay America Trust 2010-ESH, is managed by Deutsche Bank Securities and JPMorgan Securities.
Moody's Investors Service assigned provisional ratings of 'Aaa' to the $1.2 billion class A certificates; 'Aa2' to $245 million of Class B certificates; 'A2' to $243 million of class C certificates; and 'Baa2' to $312 million of class D certificates. A single loan backed by first-lien commercial mortgages for 664 extended-stay hotels are backing the CMBS.
The source familiar with the deal said that Extended Stay doesn’t need to refinance right away but is likely looking to take advantage of the low interest rate environment and good investor demand in the CMBS market today.