The $380 million will be available for both acquisitions andrefinancings, including both limited service and full servicehotels. Summit's role is to present the lender with deals, based onthe lender's underwriting standards.

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Stueber says that the most remarkable aspects of the $380million in funding is that CMBS will be available on hospitalityassets and, "Non-recourse money is back, really, for the first timesince early 2008." He estimates that 25% to 35% of the financingwill go to hotel assets and the remainder to other assetclasses.

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"There's room for roughly 17 or 18 deals and that's it," Stuebersays. Once that capital is used, the lender will securitize thepool and make a decision on whether the securitization wassuccessful. "If it is, I expect that they will inject more capitalinto this type of financing again," Stueber says.

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The lender will fund transactions on high quality assetsstarting at approximately $20 million in loan dollars with aminimum debt coverage ratio of 1.25 on an amortization of 25 or 30years with a five-year or a 10-year term. Interest rates areprojected in the low 7% range on five-year loans and the high 7%range for 10 years.

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Stueber notes that, considering the $20 million minimum loanamount, the limited service properties with values high enough toqualify are probably primarily in major metro areas. The lender isnot targeting any specific geographic markets in favor of others,but instead will look at each property on its own merits on acase-by-case basis, the Summit president says. These will bestabilized, cash-flowing properties with positive trailing 12-monthperformance numbers.

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Despite the distress in the hotel sector, Stueber points out,there are properties there and in other sectors that are performingwell. In the hotel sector, he adds, there are signs ofstabilization in RevPAR. "If RevPAR begins to stabilize over thenext quarter or two, you will see more activity," from lenders, headds.

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The new financings will be a bit of a departure for Summit inthat they will include assets other than hotels. "Our focus hasalways been in finding money for our clients on the hospitalityside," Stueber says. The firm has arranged loans for newconstruction, acquisition and refinancing of hotels from coast tocoast for many years.

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The lender wants to deploy the $380 million right away, Stuebersays. "I think the transactions will come in very quickly," hesays. "I don't think it will take much time at all, considering howquiet things have been out there."

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