Finance & DevelopmentFinanceLODGING's 2022 Guide to Lenders and Financial Service Providers

LODGING’s 2022 Guide to Lenders and Financial Service Providers

LODGING turns the spotlight on several lenders and financial service providers serving the hospitality industry and what hoteliers need to know to identify the right partners. Read about navigating the hotel lending environment in 2022 here.

Editor’s note: The following list is in alphabetical order. All numbers reflect the 2021 calendar year.

Access Point Financial LLC
Access Point Financial LLC arranged a $17.59 million bridge loan to refinance the debt for the Even Hotel by IHG Alpharetta, Ga.
Access Point Financial LLC arranged a $17.59 million bridge loan to refinance the debt for the Even Hotel in Alpharetta, Ga.

Access Point Financial LLC is a direct hospitality lender that provides bridge, PIP, capex, construction, permanent, and mezzanine/preferred equity financing to qualified hoteliers throughout the United States. The loan programs are flexible and are typically used for refinance, construction take-out, renovations, brand-mandated PIPs, and value-add transactions, such as asset repositioning, hotel conversions, and ground-up construction. The programs are designed specifically for the hospitality industry and offer an alternative to traditional bank financing. Access Point Financial understands the complexities of the industry and is uniquely positioned to customize loan programs to meet the needs of clients even during periods of volatility.

  • Volume of hotel loans in 2021: $700 million
  • Average loan amount in 2021: $12 million
  • Loan types/services offered: Bridge, PIP, Capex, Construction
  • Company contact: Lori Tirado, ltirado@accesspointfinancial.com
What is your outlook for the lending environment in 2022?

“As more lenders view hospitality in a favorable light, there will be more options available to hoteliers. We have already seen an influx of lenders coming back into the space, especially in the southern half of the country and in markets driven primarily by leisure travel. Also, it’s interesting in an inflationary environment with rising interest rates—the good news is that hotels can reprice every night, and can often adjust to minimize the impact.”

Berkadia
Fairmont Austin, Texas
Fairmont Austin, Texas

Berkadia is a leader in the commercial real estate industry, offering a robust suite of services to its multifamily and commercial property clients. Powered by deep relationships and industry-changing technology, Berkadia’s people sell, finance, and service commercial real estate, providing support for the entire life cycle of clients’ assets. Its unique ownership structure allows Berkadia to put clients’ interests first and create a marketplace that delivers a superior experience.

  • Loan types/services offered: Loan Servicing, Fannie Mae, Freddie Mac, JV Equity & Structured Capital, CMBS
  • Company contact: Andrew Coleman, Andrew.Coleman@berkadia.com
What is your advice for borrowers today?

Andy Coleman “There is no ‘one size fits all’ in terms of matching the right debt partner to the right hotel financing opportunity. What lenders are looking for and how they can best partner with borrowers is evolving as the market evolves. The true differentiator is loan servicing. Once a loan is closed, borrowers begin down a whole new road with their servicer and the last two years were a stark reminder of the importance of servicing. Berkadia’s $330+ billion of commercial loan servicing portfolio provides unparalleled quality and superior service to manage all operational aspects of loan servicing. The pandemic introduced unforeseen challenges and complexity in the loan servicing process that demonstrated how important it is to have a strong relationship with and connection to your loan servicer.”

— Andrew Coleman, Head of Berkadia Hotels & Hospitality, Senior Managing Director

Davis Hotel Capital, Inc.

Springhill Suites Marriott-lender guide

DHC is an investment bank and direct lender providing a variety of capital market solutions to hotel owners, including debt, structured finance, and equity. Lending programs include stretch senior bridge loans, as well as capex/PIP financing via mezzanine or preferred equity.

  • Volume of hotel loans in 2021: $100 million
  • Average loan amount in 2021: $18.75 million
  • Loan types/services offered: Bridge, Refi, Construction, Mezz, Pref Equity
  • Company contact: Geoff Davis, gdavis@dhotelcap.com
What is your outlook for the lending environment in 2022?

Geoff Davis “As the hospitality industry recovers from the impact of the pandemic, hotel debt is once again freeing up and is available, including capital available for refinance, acquisition, and construction, but lenders will be selective with a great deal of emphasis on sponsorship and loan terms.”

— Geoff Davis, Senior Principal, Davis Hotel Capital, Inc.

HALL Structured Finance
Westin Hotel in Tempe, Ariz.
Westin Hotel in Tempe, Ariz.

HALL Structured Finance is an entrepreneurial, value-add, direct private lender in the real estate industry. HALL Structured Finance provides capital for ground-up construction, adaptive reuse, and major asset repositioning for commercial real estate projects, primarily multifamily/hotel construction lending and hotel bridge lending, throughout the United States.

  • Volume of hotel loans in 2021: $750 million
  • Loan types/services offered: Hotel Construction and Bridge (all service levels)
  • Company contact: Don Braun, dbraun@hallgroup.com
What is your outlook for the lending environment in 2022?

Don Braun-HALL Structured Finance“We currently have a large pipeline of new loan opportunities that we are working on involving high-quality hotel projects and are bullish for what 2022 and beyond holds for the hospitality industry. We are starting to see some real signs of recovery in the sector, driven not only by the leisure demand, but also by strong group demand, and the start of a return of the business traveler. We have been fortunate that through each business cycle, we have been able to grow and take advantage of new opportunities. We certainly hope and expect that to be the case in 2022.”

— Don Braun, President, HALL Structured Finance

MidCap Hotel Loans
MidCap Hotel Loans closed an $8,000,000 refinance with significant cash-out proceeds for the WoodSpring Suites in McDonough, Georgia.
MidCap Hotel Loans closed an $8,000,000 refinance with significant cash-out proceeds for the WoodSpring Suites in McDonough, Georgia.

MidCap Hotel Loans takes pride in the high level of personal contact and service that it provides to clients. MidCap Hotel Loans utilizes its long-standing relationships with the nation’s top hotel lenders to find clients the best deal possible and then follow through by walking hotel owners through every step from term sheet to closing. Some highlights from 2021 include arranging a cash-out refinance on a new hotel after only one year of operations and a three-pack extended-stay closing involving the cash-out refinance of two properties allowing for the purchase of a third.

  • Average loan amount in 2021: $14.25 million
  • Loan types/services offered: Acquisition, Refinance, and Construction, including CMBS, Life Insurance, SBA, USDA, Private Lenders, and Commercial Banks
  • Company contact: Taylor W. Grace, tgrace@MidCapHotelLoans.com
What is your outlook for the lending environment in 2022?

Taylor W Grace Midcap“The 2022 hotel lending environment will be a mixed bag. On the positive side, many hotels are on their way to a full recovery from the effects of COVID, with some now even exceeding their 2019 performance. However, the industry is facing a significant headwind as it relates to the rising interest rate environment. The 10-year Treasury rate has risen from 1.65 percent a year ago to 2.65 percent today. Unlike past years where borrowers could exercise patience and rates would fall back down, this time it appears that it will not pay to wait.”

— Taylor W. Grace, Managing Partner, MidCap Hotel Loans

Pacifica Capital & Brokerage, Inc.

Baymont Inn & Suites, Nevada

Pacifica Capital & Brokerage, Inc. is a boutique commercial real estate brokerage firm with focused experience in hospitality real estate. With a national reach and an emphasis on hospitality financing, Pacifica maintains solid relationships with the most active and aggressive capital sources in the industry. Pacifica’s depth of knowledge, coupled with strong relationships, allows them to strategically target capital sources that best fit their client’s needs, yielding the most competitive rate and terms available in the market. With more than $2.5 billion in completed transactions, Pacifica’s proven track record and “best in class” approach to client satisfaction assures that every deal is a success.

  • Average loan amount in 2021: $7.5 million
  • Loan types/services offered: Purchase, Refinance, Construction, Mezzanine/Bridge, Hard Money, Equity Placement
  • Company contact: Chris A. Chiotis, chris@pacificacb.com
What is your advice for borrowers today?

“Our advice to borrowers in today’s financing environment is that you need to work with a hotel financing professional that can accurately present your loan package to prospective lenders and strongly make your case by thoughtfully responding to lenders’ questions and comments throughout the loan process. Secondly, borrowers must be as transparent as possible with their hotel financing professional and lender so that your current and future financing needs are clearly understood. In the end, this will ensure that the lender designs a financing strategy that delivers on all your expectations and your funding is a success.”

— Chris A. Chiotis, Principal & Founder, Pacifica Capital & Brokerage, Inc.

PMC Commercial Trust

Holiday Inn Express Ohio

PMC Commercial Trust is a nationwide direct lender focused on hospitality lending for more than 25 years.  PMC offers SBA 7(a) loans from $1 million to $5 million for the acquisition, renovation, and refinancing of hospitality and other business properties. PMC, through its subsidiary, First Western SBLC, has been granted Preferred Lender (PLP) status from the SBA, which allows for a faster turn-around time at the SBA.

  • Number of hotel loans serviced in 2021: 196
  • Average loan amount in 2021: $2.235 million
  • Loan types/services offered: SBA 7(a) loans
  • Company contact: Laurie Ivy L.Ivy@pmctrust.com
What is your advice for borrowers today?

Laurie Ivy“Be prepared to provide your lender with a brief plan for your property along with your loan request and current financial information. When additional information is requested, provide it quickly in an organized manner and explain the timing for any information that you are still working on.”

— Laurie Ivy, Senior Vice President – Lending, PMC Commercial Trust

PMZ Realty Capital, LLC
PMZ Realty Capital closed over $80 million in financing in Q1 2022, including for the Four Points by Sheraton Amarillo Center in Amarillo, Texas, among other properties.
PMZ Realty Capital closed over $80 million in financing in Q1 2022, including for the Four Points by Sheraton Amarillo Center in Amarillo, Texas, among other properties.

PMZ Realty Capital LLC is a New York-based real estate investment banking firm that operates nationwide. The firm’s advisory services are focused and highly specialized with the singular goal of creating the most advantageous capital structure for clients. A national leader in hotel financing, PMZ Realty Capital LLC focuses on debt and equity financing, note sales, joint ventures, recapitalizations, and real estate advisory services.

  • Volume of hotel loans in 2021: $300 million
  • Average loan amount in 2021: $15 million
  • Loan types/services offered: Acquisition, Bridge, Permanent, Construction, Equity Raise
  • Company contact: Michael Sonnabend, sonnabend@pmzcapital.com
What is your advice for borrowers today?

Michael Sonnabend“Hotels require a lot of investment, and owners don’t always plan effectively for that. You have to take a step back and be rational about your expectations of what your hotel is, what you’re projecting for the economics of the deal, and what you’re projecting for the capital side of the deal.”

— Michael Sonnabend, Managing Member, PMZ Realty Capital

Spirides Hotel Finance Company
Spirides Hotel Finance Company arranged an $8 million construction-to-permanent, conventional mortgage loan for the Holiday Inn Express & Suites Rock Hill, South Carolina.
Spirides Hotel Finance Company arranged an $8 million construction-to-permanent, conventional mortgage loan for the Holiday Inn Express & Suites Rock Hill, South Carolina.

Through its nationwide network of lenders and other sources of capital, Spirides Hotel Finance Company provides financing for hotel, motel, and resort owners and developers across the United States to fund new ground-up construction projects, acquisitions, debt re-financings, and renovations. Spirides Hotel Finance Company has the expertise and the capacity to quickly fund any type of hotel capital project. The size of the financing products provided for customers typically ranges from $2 million and upwards.

  • Volume of hotel loans in 2021: $55 million
  • Average loan amount in 2021: $9 million
  • Loan types/services offered: Acquisition, Construction, Debt Refinance, Renovation
  • Company contact: Harry G. Spirides, info@hospitality-finance.com
What is your outlook for the lending environment in 2022?

Harry G Spirides

“The volume of hotel mortgage loan origination in 2022 will continue at a very brisk pace. However, to contain inflation we believe the Federal Reserve will continue hiking interest rates in quarter-point to half-point increments during each of the next six times they meet in 2022. This will have a direct effect on the interest rates most banks will offer on their loans to hoteliers. A persistent industry-wide labor shortage, rapidly rising inflation, and higher interest rates will make lender underwriting standards more conservative when considering new hotel construction loans.”

— Harry G. Spirides, President, Spirides Hotel Finance Company

Stonehill

Stonehill primarily focuses on funding bridge loans, mezzanine loans, permanent loans, and preferred equity investments backed by limited- and select-service and compact full-service hotel assets. Since its founding in 2013, Stonehill originated more than $3.5 billion in loans for hospitality projects seeking capital to complete acquisitions, recapitalizations, refinancing, and renovations.

  • Number of hotel loans serviced in 2021: 30
  • Volume of hotel loans in 2021: $850 million
  • Average loan amount in 2021: $28 million
  • Loan types/services offered: Bridge, Construction, Mezzanine, Preferred Equity, Commercial Property Assessed Clean Energy (CPACE)
  • Company contact: Jared Schlosser, jschlosser@stonehillsc.com
What is your outlook for the lending environment in 2022?

Michael Harper“While performance in some markets has surpassed pre-COVID levels, most lenders are not back to pre-COVID originations. Throw in inflation and labor challenges, and you have more uncertainty. Traditional lending sources are slowly coming back, but borrowers will have to get more creative to get projects capitalized. Liquidity will be a hot button issue, as will a borrower’s track record. Expect to see non-bank lenders continue to fill the void and gain market share. Leverage will continue to be conservative, and lenders will stress underwriting to reflect rising rates.”

— Michael Harper, Senior Vice President, Stonehill

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