CHICAGO—Alpha Capital CRE has arranged financing for three hotel transactions during the COVID-19 pandemic, including two Marriott-branded, ground-up developments; five limited-service hotel acquisitions; and one mezzanine hotel acquisition.
In the first transaction, Alpha Capital CRE completed a $32.5 million construction, full-recourse loan for the Courtyard by Marriott and Fairfield by Marriott located in Sparks, NV and Winnemucca, NV, respectively. The transaction closed during the COVID-19 lockdown in early May.
The company also orchestrated a $27.6 million bridge loan for the acquisition of five limited-service hotels located throughout the states of Nevada, Colorado, Utah and California; combined, they total 559 keys.
“It has been arduous for many to find reliable capital for hotel transactions since the onset of the pandemic and its effect on travel and hospitality,” said Suraj Desai, SVP, Alpha Capital CRE. “Hotel values, for obvious reasons, are currently fluid and, to a certain extent, ambiguous. With our nimble approach to details and persistence, we have the capital relationships and ability to execute hotel transactions during this taxing period.”
Alpha Capital CRE also placed a $1.3 million mezzanine loan for the acquisition of a 120-key, limited-service hotel in Thornton, CO. The mezzanine transaction was executed by newly formed Monolith Capital based out of New York. It was their first transaction.