Moxy by Marriott

Location: Tempe, Arizona

Size: $19,000,000

Challenge: Underwriting

Type: Bridge Loan

The owners of a Four Points by Sheraton wanted to sell the hotel to an investor, change the flag and retain the management. We were hired to provide bridge financing to fund the acquisition and conversion costs to Moxy, a new Marriott flag that had not yet even launched in 2014.  Tempe had been hard hit by the recession, and we identified a lender that was active in the market.  We also addressed the uncertainty of how a new hotel brand would perform and trying to budget the costs of a PIP without having complete brand standards.  When the buyer of the hotel backed out, we were able to convince the lender to refinance the existing ownership under the same conversion strategy in what became the 1st Moxy hotel opened in the United States.