WASHINGTON, DC-Money for hotels–acquisitions, refinancing and most of all, development–is the first to leave the market when it turns sour and the last to come back. So says Michael H. Sonnabend, managing partner of PMZ Realty Capital. When the capital does return it usually is to the top hotel markets such as Washington, DC and, in this cycle, New York City and Boston, he tells GlobeSt.com.

He is starting to see signs of that now. “Lenders see signs of stabilization [in these markets] so they feel they can underwrite and be comfortable that the fundamentals won’t deteriorate in the short run.”

Right now refinancing is the easiest financing to be had for hotels in these markets, he says. Sonnabend recently helped the Hilton Hotel in Downtown Silver Spring secure a $23-million nonrecourse refinancing from a publicly-traded mortgage REIT.

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