Suburban Extended Stay Portfolio

Location: Five Hotel Portfolio

Size: $22,000,000

Challenge: Underwriting

Type: Bridge Loan

In 2014, we were given the daunting assignment of placing acquisition financing for a portfolio of independent, exterior corridor hotels.  Our client was one of first Motel 6 franchisees in 1995, and he educated us about the economy operating model.  We successfully closed that financing, and over the course of four years, we dedicated ourselves to developing an institutional platform to acquire and operate economy hotels in scale.  This five hotel portfolio was purchased off-market and immediately converted to Motel 6 / Studio 6 combo franchises.  The financing was provided by an institutional debt fund who understood the play, and a private placement was executed for 80% of the equity.