Morningstar DBRS Finalizes Provisional Credit Ratings on JW Trust 2024-BERY

DBRS, Inc. (Morningstar DBRS) finalized its provisional credit ratings on the following classes of Commercial Mortgage Pass-Through Certificates, Series 2024-BERY (the Certificates) issued by JW Trust 2024-BERY:

-- Class A at AAA (sf)
-- Class B at AA (sf)
-- Class C at AA (low) (sf)
-- Class D at A (low) (sf)
-- Class E at BBB (low) (sf)
-- Class F at BB (sf)
-- Class HRR at BB (low) (sf)

All trends are Stable.

The JW 2024-BERY transaction is secured by the fee-simple interest in the JW Marriott Turnberry Resort, a 685-key, full-service resort and the private, members-only Turnberry Isle Country Club. The 270-acre resort is opportunely situated in Aventura, between Miami and Fort Lauderdale, Florida, on the eastern side of the Florida coast. The resort provides a host of amenities for club members, hotel guests, and non-members alike, which Morningstar DBRS views positively, in addition to its strong historical performance, property quality, and experienced and dedicated sponsor.

The borrower sponsor for this transaction will be Fontainebleau Developments, a real estate development and hospitality group with a portfolio based on the premise of designing, owning, marketing, and operating its assets throughout the entire development of each project. The portfolio of hospitality assets includes the Fontainebleau Miami Beach, Hilton Nashville Downtown, and the Fontainebleau Las Vegas. Fontainebleau Developments is led by Jeffrey Soffer, the loan guarantor, who is the chairman and chief executive officer, and has been at the firm for 25 years, helping to expand the company from a regional leader to a nationally recognized organization. The resort is a Marriott Flag and is managed by Fontainebleau Development LLC.

Following the two recent renovations at the property, occupancy has seen a strong recovery with the occupancy rate for the T-12 ended July 31, 2024, at 79.5%. During renovations in 2019, the property achieved an occupancy rate of 57.6%, ADR of $283.86, and RevPAR of $180.87. Occupancy dipped in 2020 following the pandemic but recovered in 2022 amid further renovations. The resort achieved an occupancy rate of 67.9%, ADR of $358.98, and RevPAR of $243.81 in 2022 and has since seen continued growth through July 2024. For the T-12 ended July 31, 2024, the occupancy rate was 79.5% with an ADR of $329.80 and a RevPAR of $262.29, displaying adequate recovery after both the pandemic and the property renovations.

Morningstar DBRS' credit ratings on the Certificates address the credit risk associated with the identified financial obligations in accordance with the relevant transaction documents. The associated financial obligations are the related Principal Distribution Amounts and Interest Distribution Amounts for the rated classes.

Morningstar DBRS' credit ratings do not address nonpayment risk associated with contractual payment obligations contemplated in the applicable transaction document(s) that are not financial obligations. For example, the credit ratings do not address Spread Maintenance Premiums.

Morningstar DBRS' long-term credit ratings provide opinions on risk of default. Morningstar DBRS considers risk of default to be the risk that an issuer will fail to satisfy the financial obligations in accordance with the terms under which a long-term obligation has been issued. The Morningstar DBRS short-term debt rating scale provides an opinion on the risk that an issuer will not meet its short-term financial obligations in a timely manner.

ENVIRONMENTAL, SOCIAL, AND GOVERNANCE CONSIDERATIONS
There were no Environmental/Social/Governance factor(s) that had a significant or relevant effect on the credit analysis.

A description of how Morningstar DBRS considers ESG factors within the Morningstar DBRS analytical framework can be found in the Morningstar DBRS Criteria: Approach to Environmental, Social, and Governance Factors in Credit Ratings (August 13, 2024), https://dbrs.morningstar.com/research/437781.

All credit ratings are subject to surveillance, which could result in credit ratings being upgraded, downgraded, placed under review, confirmed, or discontinued by Morningstar DBRS.

Notes:
All figures are in U.S. dollars unless otherwise noted.

The principal methodology is North American Single-Asset/Single-Borrower Ratings Methodology (September 19, 2024), https://dbrs.morningstar.com/research/439699.

Other methodologies referenced in this transaction are listed at the end of this press release.

With regard to due diligence services, Morningstar DBRS was provided with the Form ABS Due Diligence-15E (Form-15E), which contains a description of the information that a third party reviewed in conducting the due diligence services and a summary of the findings and conclusions. While due diligence services outlined in Form-15E do not constitute part of Morningstar DBRS' methodology, Morningstar DBRS used the data file outlined in the independent accountant's report in its analysis to determine the credit ratings referenced herein.

The credit rating was initiated at the request of the rated entity.

The rated entity or its related entities did participate in the credit rating process for these credit rating actions.

Morningstar DBRS had access to the accounts, management, and other relevant internal documents of the rated entity or its related entities in connection with these credit rating actions.

This is a solicited credit rating.

Please see the related appendix for additional information regarding the sensitivity of assumptions used in the credit rating process.

DBRS, Inc.
22 West Washington Street
Chicago, IL 60602 USA
Tel. +1 312 332-3429

The credit rating methodologies used in the analysis of this transaction can be found at: https://dbrs.morningstar.com/about/methodologies.

-- Legal Criteria for U.S. Structured Finance (April 15, 2024), https://dbrs.morningstar.com/research/431205
-- North American Commercial Mortgage Servicer Rankings (August 23, 2024), https://dbrs.morningstar.com/research/438283
-- Morningstar DBRS North American Commercial Real Estate Property Analysis Criteria (September 19, 2024), https://dbrs.morningstar.com/research/439702

For more information on this credit or on this industry, visit https://dbrs.morningstar.com or contact us at info-DBRS@morningstar.com.