NATIONAL REPORT—Finance companies are securing refinancing, acquisition and construction loans for hotel companies. Here’s a look at the deals that keep the industry going:
HSF Closes $26.7M Loan for Hyatt House in CA
Dallas-based Hall Structured Finance (HSF) has closed a new first lien construction loan totaling $26.7 million to finance the development of a Hyatt House in Sacramento, CA. The new 128-room hotel is anticipated to open in 2021, and the project developer is Roger Hume, founder of Hume Development Inc.
The planned hotel includes elements of both new development and adaptive-reuse, as the facade of the historic Eastern Star Temple, originally constructed in 1928 as a meeting hall for a Masonic women’s organization, will be retained and house the hotel’s lobby, meeting spaces, breakfast area, bar and lounge. However, 90% of the hotel will be new-construction. The Hyatt’s prime midtown location will provide guests with access to a 24-hour walkable urban neighborhood that offers fine dining, boutique shopping, entertainment and cultural festivities. The hotel is also located across the street from Sutter Medical Center, which recently completed a $1-billion expansion.
Chris Chase, president of Chase Financial Corp., sourced the financing for the project.
Aries Capital Closes Loan for Las Vegas Medical District Hotel
Aries Capital revealed that Brandon Perdeck, VP in the Miami office of the Chicago-based firm, originated a $13.8-million acquisition loan for a Hampton Inn located near Summerlin at 7100 Cascade Valley Ct. in Las Vegas within the Las Vegas Medical District.
Aries Capital secured a non-recourse, 10-year, fixed-rate CMBS loan for the borrower with a 25-year amortization that was closed at an interest rate below 4%. The borrower came to Aries Capital through a local investment sales broker who had done business with Aries and Perdeck in the past.
Located in the Las Vegas Medical District, 10 minutes from the airport and close to numerous major highways, the 127-room Hampton Inn is a high-performing limited-service hotel. The borrower, a private hotel portfolio owner, acquired the property and has plans for a complete exterior and interior renovation including the latest technological and design updates, as well as modernization of the lobby, landscaping and lighting, making the total capital stack approximately $21.7 million.
CHC Secures $22M Refi for Embassy Suites in VA
CHC Capital has arranged $22 million for the refinance of the Embassy Suites in Richmond, VA, for Shamin Hotels. The loan was placed with a national lender and offered a 10-year term, 10-years of interest only and a fixed interest rate locked at 3.7%.
The 225-key property was acquired by Shamin in 2015 and was recently renovated at a cost of $38,000 per key. It is the only Embassy Suites in Richmond, VA, and benefits from its proximity to some of Richmond’s major demand generators. In connection with the refinance transaction, the lender allowed Shamin to subdivide the parcel to create a separate lot for a future hotel development adjacent to the Embassy.