Blackstone hotels firm restructures $633mln debt

* Blackstone hotel firm gets 150mln eur mezz loan from MSREF

* Restructuring extends company’s debt by 5 years

LONDON, Dec 13 (BestGrowthStock) – A European hotel company owned by
Blackstone (BX.N: ) property funds has restructured 480 million
euros ($633 million) of its debt, extending the maturity by five
years to ride out a rough patch for the hotel industry.

The restructuring includes a new 150 million-euro mezzanine
loan, fully placed with Morgan Stanley (MS.N: ) (Read more about the money market today. ) Real Estate Fund
(MSREF) VII Global, a statement from Blackstone and its bankers
Citi (C.N: ) and ING Real Estate Finance (ING.AS: ) said on Monday.

The remaining 330 million euros borrowed by BRE/Hospitality
Europe Holding, an owner of nine high-end hotels across Europe,
will stay in a senior debt facility held by a syndicate of five
banks, it said.

Europe’s tourism industry has largely rebounded since a year
ago when travel was hit by the global recession, although some
markets continue to struggle as visitors remain cautious in
their spending. [ID:nLDE6801V1] [ID:nLDE67U1N6]

“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 statement said.

Specialist debt funds are poised to pour cash into a
multi-billion dollar financing gap in European real estate, left
by retreating senior lenders and tumbling prices, nabbing hefty
returns and a side-door stake in the sector. [ID:nLDE6B216B]

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

The senior facility continues to be held by the syndicate
comprising Aareal Bank (ARLG.DE: ), Citibank International,
Deutsche Post Bank (DPBGn.DE: ), ING Bank and Swiss Re Capital
Management and Advisory (RUKN.VX: ), the statement said.

It said BRE/Hospitality, controlled by Blackstone Real
Estate Partners International Fund II and Fund V, owns a
portfolio of 3,423 hotel rooms in Amsterdam, Brussels,
Frankfurt, Paris, Prague and Stockholm.
(Reporting by Daryl Loo; Editing by David Holmes)
($1=.7580 Euro)

Blackstone hotels firm restructures $633mln debt