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BRE/Hospitality Europe restructures debt, extends maturity by 5 years

SCHIPHOL, NETHERLANDS BRE/Hospitality Europe Group, a hotel owner controlled by two Blackstone real estate funds, has restructured €480 million of its debt and extending the maturity by five years.

The restructuring includes a new €150 million mezzanine loan from Morgan Stanley Real Estate Fund VII Global. The remaining €330 million of the loan will stay in a senior debt facility held by a syndicate of five banks, Blackstone says. The restructuring extends the maturity of the company’s debt by five years “to help it get through the low point in the hotel cycle,” the company says in a statement.

BRE/Hospitality owns nine hotels totaling 3,423 guestrooms in Amsterdam, Brussels, Frankfurt, Paris, Prague and Stockholm.

Citi and ING REF acted as joint-coordinators of the restructuring and joint-bookrunners of the mezzanine facility.

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