JP Morgan is in the market with a $575 million commercial mortgage-backed securities deal backed by 51 extended stay, limited service and fill service hotel properties.

 The deal called JPMCC 2013-INN has been assigned preliminary ratings by Fitch Ratings. The class A notes are rated ‘AAA’, the class B notes are rated ‘AA-‘, the class C notes are rated ‘A-‘,  the class D notes are rated  ‘BBB-’ and the class E notes are rated ‘BB’.

The 51 properties comprising the portfolio have an average age of 25 year and have been renovated recently between 2007 and 2012. The largest state exposure is in California, with 10 hotels representing 37.3% of the portfolio, according to the presale report. 

The Residence Inn, Marriot’s extended stay brand is the largest franchise represented in the pool. Other brands represented in the pool are Hyatt House, Hampton Inn, Courtyard by Marriott, Four Points Sheraton, TownPlace Suites, Westin and Sheraton.

The properties were previously controlled by Innkeepers USE Trust which was acquired by Apollo Investment.

The transaction is structured with an addition $185 million mezzanine A loan, $100 mezzanine B loan and $90 million mezzanine C loan; each of the loans have a maturity date of Sept. 9, 2015.

Last week JP Morgan began marketing the Boca Hotel Portfolio Trust 2013 which is backed by a loan securing the Waldorf Astoria Boca Raton, Double Tree Bahia Mar Fort Lauderdale, Hyatt Regency Pier Sixty-Six and Waldorf Astoria Edgewater Beach Hotel.


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