NATIONAL REPORT—Funding is keeping the fun flowing for hoteliers, from multi-property owners to those with one-offs.
Sonnenblick-Eichner Co. arranged $135.78 million of non-recourse, first-mortgage financing for 11 of Memphis-based Cooper Hotels’ properties, representing 2,037 rooms. The hotels—all Hilton, Inc. brands—include full-service, select-service, extended-stay and limited-service hotels in Florida, Michigan and Tennessee.
The five-year, floating-rate loan was underwritten to a 70% loan-to-value and pays on an interest-only basis for the entire term.
The portfolio includes: Hilton Naples, Hilton Orlando/Altamonte Springs and Homewood Suites by Hilton Ft. Myers Airport, all Florida; an Embassy Suites by Hilton, Hilton Garden Inn and Hampton Inn & Suites, all Detroit/Airport-Romulus, in Michigan; and five DoubleTrees by Hilton in Tennessee with locations in Memphis, Jackson, Murfreesboro, Oak Ridge-Knoxville and Johnson City.
“The Cooper Hotels portfolio was marketed for both a fixed- and floating-rate execution,” said Elliot Eichner, a principal of Sonnenblick-Eichner Co. “Ultimately, our client opted for a floating-rate loan, affording them maximum flexibility with respect to prepayment. Given the viability of the cash flow, excellent sponsorship and ongoing capital investment in the properties, we had significant lender interest in the recapitalization.”
Principal Patrick Brown noted the financing was the third one Sonnenblick-Eichner Co. had arranged for Cooper Hotels.
What’s in a Name?
Crystal Investment Property, LLC, a member of Hotel Brokers International, sold A Bandon Inn, in Bandon, OR, for an undisclosed price.
The eight-key property, which can accommodate up to 12 guests, is a destination golf property on the southern Oregon coast near Bandon Dunes and the Pacific Ocean, and serves an upscale clientele primarily of golfers seeking accommodations close to the nearby courses.
“This phenomenal property enjoys a strong repeat clientele,” said Joseph Kennedy, president of Crystal Investment Property. “The seller spent years curating a strong business and the buyer has begun the process of building on this foundaCoopertion and further enhancing its reputation as a world class destination lodge.”