Renaissance Newark Airport

Steve Michels | (212) 841-7782  | stephen.michels@cushwake.com

Jared Kelso | (212) 841-9205 | jared.kelso@cushwake.com

Steven Vazquez | (212) 698-5562 | steven.vazquez@cushwake.com 

Jacob Frisch | (212) 841-9205 | jacob.frisch@cushwake.com  

Renaissance Newark Airport - Financing Opportunity 

Cushman & Wakefield (“C&W”) has been exclusively engaged by MCR Investors to arrange up to $20 million ($51,000 per key; 55% LTV) of financing proceeds for the 396-room Renaissance Newark Airport (the "Hotel" or "Property”), a recently renovated, full-service hotel boasting a premier location and unparalleled accessibility within the Newark Airport submarket. Proceeds will be used to retire the existing senior loan and fund additional capital investment, as well as any required reserves.

The Hotel underwent a $6.7 million ($17,000 per key) renovation that upgraded the lobby, restaurant, fitness center, exterior, and systems. Ownership is currently implementing a 2-acre expansion of the Property’s parking facility that will increase the number of spaces from 485 to 950, which is expected to generate an additional $1.5 million in revenue in its first year of operation.

As one of the closest properties to the recently expanded Newark International Airport (“EWR”), which recently completed a $2.7 billion renovation program that replaced the aging Terminal A, the Property is primed to take advantage of the increase in airport capacity that is anticipated to total approximately 50 million passengers annually.

At 55% loan-to-value and a $51,000 per key basis on requested proceeds, the financing offers lenders a well-secured position for an institutional quality asset with proven cash-flow, irreplaceable location, a robust and ramping parking operation, world-class management, and unmatched sponsorship.

INVESTMENT HIGHLIGHTS

• Strong in-place NOI  representing a 10%+ debt yield on requested proceeds.  
• Attractive loan basis of $51,000 per key is significantly below replacement cost and well below Newark hotel sale transactions.
• Unparalleled Sponsorship in MCR Investors, the third largest hotel operator in the U.S.
• Strong Franchise affiliation in Marriott and features the submarket’s most upscale brand in Renaissance.
• Recently Renovated Hotel with ramping performance having received $6.7 million ($17,000 per key) in capital improvements.
• Unmatched visibility and accessibility from both Newark International Airport and Downtown Newark relative to other hotels located within the submarket.
• Robust airport activity with over 43.5 million passengers in 2022, below the 2019 peak of $46.3 million, which underscores the expected lift from the recently completed terminal A.
• Favorable submarket dynamics given the ongoing $2.7 billion airport expansion, over $2.0 billion of development activity in Downtown Newark, and limited supply concerns.
• Tremendous market-wide demand fundamentals with the continued influx of high-profile corporate tenants to the market such as TD Ameritrade, Mars Wrigley, Pearlman & Miranda, Pershing/BNY, U.S. Immigration and Customs Enforcement, and Robinson Miller.
• $100+ RevPAR market highlighted by the competitive set peaking at $111 RevPAR in 2019.
• No new competitive supply entering the Newark market.