Location: Four Hotel Portfolio
Type: Bridge Loan
With an upcoming loan maturity, our client wanted to evaluate fixed and floating rate options and obtain $20 million to complete relicensing PIPs. The portfolio had exhibited declining RevPAR over the last decade with occupancy on three of the hotels in excess of 80%. We successfully argued that improving the physical condition would allow the owners to rebalance their RevPAR by increasing ADR and lowering occupancy, resulting in substantially higher NOI due to operating leverage. We were also able to structure a release of excess land at the jewel of the portfolio, the Renaissance Asheville, and navigate an early relicensing PIP with Marriott on this 1980s property that has PTACs.