KBRA Assigns Preliminary Ratings to Great Wolf Trust 2019-WOLF

NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) is pleased to announce the assignment of preliminary ratings to seven classes of Great Wolf Trust 2019-WOLF, a CMBS single-borrower transaction.

The collateral for the securitization consists of a $1.7 billion non-recourse, first lien, floating-rate mortgage loan that is secured by the borrower’s fee simple interests in 14 wholly owned properties totaling 5,345 keys, the minority equity interests in two joint venture entities that each own a resort property, and the license agreement for a third-party owned and managed property. The mortgage loan is also secured by non-real estate collateral including certain franchise assets, equity interests and intellectual property.

The wholly owned properties consist of a total of 14 indoor waterpark resort hotels, which are all operated under the Great Wolf Lodge brand and are located in 14 MSAs within 13 states. Great Wolf Lodges are indoor waterpark resorts that are considered destination resorts with many on-site amenities for guests including an expansive indoor/outdoor water park, meeting space, numerous food & beverage outlets, an arcade, full-service spa, fitness facility, and multiple retail outlets. The waterparks feature hot tubs, interactive water forts, water slides, river tubing, wave pools and swimming pools. For the TTM 10/2019 period, the portfolio’s occupancy was 76.9% with an average daily rate (ADR) of $254.53, resulting in revenue per available room (RevPAR) of $195.71.

KBRA’s analysis of the transaction included a detailed evaluation of the properties’ cash flows using our U.S. CMBS Property Evaluation Methodology and the application of our U.S. CMBS Single Borrower & Large Loan Rating Methodology. In addition, KBRA also relied on its Global Structured Finance Counterparty Methodology for assessing counterparty risk in this transaction, to the extent deemed applicable.

The results of our analysis yielded a KBRA net cash flow (KNCF) for the collateral of approximately $187.1 million. To value the portfolio, KBRA applied a blended capitalization rate of 12.54%. KBRA arrived at a value of approximately $1.5 billion and a KBRA Loan to Value (KLTV) of 113.9% for the portfolio. In our analysis of the transaction, we considered third-party engineering, environmental, and appraisal reports; management agreements; the results of our site inspections of nine of the properties; and legal documentation.

For further details on KBRA’s analysis, please see our pre-sale report, Great Wolf Trust 2019-WOLF, published at www.kbra.com. The preliminary ratings are based on information known to KBRA at the time of this publication. Information received subsequent to this release could result in the assignment of final ratings that differ from the preliminary ratings.

Preliminary Ratings Assigned: Great Wolf Trust 2019-WOLF



Initial Class Balance


Expected KBRA Rating





AAA (sf)





AAA (sf)





AAA (sf)





AA- (sf)





A- (sf)










BB- (sf)
















1Notional balance.

To access ratings, reports and disclosures, click here.

Related Publications: (available at www.kbra.com)



About KBRA and KBRA Europe

KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider, and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.


Analytical Contacts:

Michael McGorty, Director

(646) 731-2393


Michael Brown, Managing Director

(646) 731-2307


Mimi Ophir, Director

(646) 731-3383


Keith Kockenmeister, Senior Managing Director

(646) 731-2349


Business Development Contact:

Michele Patterson, Managing Director

(646) 731-2397


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