Braemar Hotels & Resorts recently secured $80 million for the refinancing of Pier House Resort & Spa in Key West, Florida, and Sonnenblick-Eichner arranged $13.75 million in financing for the L’Horizon Resort and Spa in Palm Springs, Calif. Here’s a look at these and more notable hotel sale and financing announcements from this past week:
Braemar Secures $80 Million Refinancing of Pier House Resort & Spa in Key West
RobertDouglas announced that it advised Braemar Hotels & Resorts in securing an $80-million, non-recourse senior mortgage for the refinancing of Pier House Resort & Spa in Key West, Florida—a 142-room waterfront property that includes a 2,600-square-foot conference center, a private white-sand beach, an outdoor heated pool with whirlpool, a health club and fitness center, and the only full-service spa in Key West.
“This was a highly efficient execution with the lender providing extremely attractive terms. As a superior property with robust in-place cash flows in one of the nation’s strongest and most desirable lodging markets, the property facilitated a highly-competitive process,” said Evan Hurd, principal and managing director with RobertDouglas.
“Key West’s long-term track record of strong RevPAR performance, resiliency though economic downturns, and extremely high barriers-to-entry attracted robust lender interest,” added Lindsey Whang, director with RobertDouglas. Key West is considered to be one of the top lodging markets in the country. With regulations in place that make it nearly impossible for new supply, recent increases in direct flights from New York, Chicago, Dallas, and Atlanta, and strong leisure travel trends, the market is expected to see continued growth for the foreseeable future.
Sonnenblick-Eichner Arranges Financing for L’Horizon Resort and Spa
Sonnenblick-Eichner Company has arranged $13.75 million in construction and interim financing for L’Horizon Resort and Spa—a full-service, luxury resor in Palm Springs, Calif. The five-year LIBOR-based loan provides funds to refinance the existing debt on the 25-room resort as well as for the ground-up construction of an additional 24 bungalow-style guestrooms on an adjacent parcel. Situated on approximately three acres, L’Horizon Resort and Spa is among the lowest-density resort developments in the market. The property has nearly 50 water features, an infinity-edge swimming pool, and a fire pit.
“In addition to tailoring the hybrid loan structure to accommodate a hotel with existing operations and new construction, the loan also provides our client with a conversion option to a permanent loan ensuring a take-out upon completion,” said Elliot Eichner, a principal of Sonnenblick-Eichner Company.
“We continue to experience a very liquid market throughout the United States for construction loans, for both branded and independent hotels,” added Patrick Brown, also a principal of Sonnenblick-Eichner Company.
HREC Arranges Sale and Financing of Hampton Inn Rochester North in New York
HREC Investment Advisors has arranged the sale and purchase financing of the 117-guestroom Hampton Inn Rochester North located in Rochester, N.Y.
The sale was led by Ketan Patel, managing director in the Washington, D.C., office and Mark von Dwingelo, senior vice president in the Danbury office, and purchase financing was led by John Siska, vice president of the HREC Capital Markets in the Boston office. HREC placed the five-year, fixed rate acquisition loan on behalf of the buyer with a regional bank.
Located on the southern shore of Lake Ontario, Rochester is New York State’s third-most-populated city behind New York City and Buffalo. The city has an established history in manufacturing, as companies like Kodak, Xerox, and Bausch & Lomb were all founded there. The area is also home to University of Rochester, Rochester Institute of Technology, and SUNY Brockport.
Hunter Hotel Advisors Announces Three Hotel Deals
Hunter Hotel Advisors, in it’s continued relationship with Hospitality Investors Trust, Inc., brokered the sale of two more properties: the Springhill Suites in Houston, Texas, and the Courtyard by Marriott in Mobile, Ala. The recently renovated, 122-room Springhill Suites located near Houston Hobby Airport sold to a Texas-based buyer. The 78-room Courtyard by Marriott in Mobile was also extensively renovated in 2015.
In addition, Hunter recently advised 1754 Properties on the purchase of the TradeWinds Island Grand Resort and Rumfish Beach Resort, which sit on 31 waterfront acres in St. Pete Beach, Fla. The property has more than 800 guestrooms and suites, seven pools, and 14 food and beverage venues onsite. Robert Taylor, senior vice president of Hunter’s Miami office, led the selling team. Aberdeen Advisors, Inc. of St. Petersburg, Fla., listed the property.
The Siegel Group Buys Former Hawthorn Suites in Holland, Ohio
The Siegel Group Nevada, Inc., has purchased the former Hawthorn Suites by Wyndham in Holland, Ohio. This acquisition brings the number of Siegel Suites and Siegel Select properties throughout the United States to 55 and marks the brand’s first location in the Ohio market. The company has an existing presence throughout Nevada, Arizona, Texas, New Mexico, Louisiana, Tennessee, Mississippi, Alabama, and South Carolina.
The 96-unit property is comprised of twelve, two-story buildings with a pool, gym, basketball court, and guest laundry facility. Under the prior ownership, the property underwent a $1.4 million renovation between 2017 and 2018. The Siegel Group will be operating the property as a Siegel Suites—the company’s flagship brand of flexible-stay communities, which provide fully-furnished, apartment-style units and allow for flexible payment options without requiring a long-term commitment.