HOUSTON—Mission Capital Advisors has arranged a $15.26 million acquisition loan on behalf of Midas Hospitality to purchase the newly constructed Staybridge Suites Houston–Medical Center, a 120-key extended stay hotel. The Mission Capital team structured the recourse loan from IBERIABANK.
The flagged property opened in January 2017, and is situated in one of Houston’s strongest submarkets—the Texas Medical Center. The hotel’s location near the NRG Park convention center, NRG Stadium, Rice University, and the Texas Medical Center—home of one of the world’s largest cancer and children’s hospitals—assures the area of a consistent flow of commercial, sports, academic, and medical visitors.
“As a rare new hotel in this area of Houston, the Staybridge Suites is a very attractive asset, but the property’s lack of operating history was a challenge for some lenders,” said Justiss. “Additionally, with the struggling oil market, there are some capital providers who are generally limiting their exposure to Houston. Despite these challenges, we were able to secure interest from a wide range of lenders and provide the sponsor with both recourse and non-recourse options from banks, hedge funds, and debt funds. IBERIABANK was the right choice for a number of reasons, but the determining factors were that they understood the sponsor’s financial needs, their business plan, and the asset, which is in their backyard.”
“The quality of this hotel is unquestionable, and we have complete confidence that its best-in-class amenities and prime location will attract a steady stream of visitors,” said Midas’ Co-Founder, J.T. Norville. “We were also able to negotiate and structure a mutually beneficial long-term agreement with the IHG brand, one of our three preferred brands across our portfolio.”
“Midas is exactly the type of well-capitalized, talented sponsor that IBERIABANK looks to cultivate and serve as we grow our high-quality loan portfolio,” said Robert Martin, Senior Vice President for IBERIABANK. “Working with Mission was a pleasure. Their streamlined due diligence and closing process was key in facilitating the quick acquisition financing that this purchase required.”
The Staybridge Suites franchise caters to long-term travelers—internationally, nearly 60 percent of Staybridge Suites guests stay for visits of five or more nights. The hotel features a range of conveniences including a fitness center, barbecue grills, and an outdoor pool. In-room amenities include 42-inch cable TVs, as well as fully-equipped kitchens with cooktop stoves, full-sized refrigerators, and dishwashers.
Added Draganiuk: “The sponsor is a very sophisticated hotel operator, with the unique ability to judiciously scale corporate growth and ramp occupancy at their properties. They had been looking to invest in the Houston market for several years, and this well-located asset will be a very strong addition to their growing portfolio. We met with the sponsors, Robert and the whole IBERIA team in Houston, and they were great. They are a great fit for Midas, and we hope to close more deals with them in the future, with Midas, as well as our other clients.”
Midas Hospitality’s portfolio now comprises 30 hotels and more than 2,500 keys throughout the Midwest and Southeast. Mission Capital Advisors has also recent arranged loans for a Midas-owned hotel property in South Carolina, as well as other hospitality assets in California, Florida, Illinois, New York, Texas, and Washington.
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