Apollo completed the purchase of Rockwood’s post in the property for $86 million according to CoStar Group.
Apollo earlier with a group of lenders who granted Rockwood $160 million in 2015 to refinance a commercial mortgage-backed securities (CMBS) loan on the property.
Positioned at 1127 Connecticut Avenue NW, the 657-key city hotel dates back to 1925 and has welcomed celebrities, politicians, and other dignitaries, including former President John F. Kennedy, Winston Churchill, Amelia Earhart, and J. Edgar Hoover.
The hotel and Rockwood have had a rough run of it. Rockwood acquired the hotel in 2007, at the height of the market, in a $260 million deal, financing it with a $200 million securitized loan. But a scandal in 2008, followed by the great withdrawal diminished the appraised value of the hotel, and it fell to $160 million in 2010, from $285 million in 2008.
At that cost, with a $200 million loan on it, the hotel was way over-leveraged, and Rockwood ought to structure the loan.
In 2015, with the CMBS loan was reaching its maturation, Rockwood refinanced the hotel with the $160 million loans from Apollo and others. That year it also lost its Renaissance branding and sold off 71 rooms to Marriott International to use as part of its points-based Marriott Vacation Club Destinations program for $32 million. The hotel giant also took over management of the hotel, and it is currently managed by Marriott’s Autograph Collection.
A new report by the American Hotel & Lodging Association announced that what the Mayflower experienced is not much different than the rest of the hotel industry.