CARLSBAD, CA-Hospitality industry finance broker Summit Capital has been tapped to place $100 million in debt on behalf of a lender who will fund up to approximately $15 million in loan dollars per deal for projects that meet the specific criteria of the lender. John Stueber, president of Summit, says that the company will conduct the deal analysis and will "present the lender with hotel deals that fit pre-set parameters."

The lender will fund transactions on existing high-quality assets, with a minimum debt coverage ratio of 1.4 on a 20-year amortization with a term of three to five years. Stueber says that the lender is targeting limited and select service assets, as well as extended stay properties between two and 10 years old on a 65% LTV. The capital is available now. The name of the lending partner is undisclosed.

This allocation by the lender "represents a continuation of the positive new direction the hotel market has taken in the last two months," Stueber said in a press release. "We believe that the next five years are going to be some of the best in wealth creation in the lodging industry.” In addition, Stueber said that the second half of 2010 "likely represents the lowest price per room we’ll see."

The steady increase in RevPAR across the US hotel market "signals that values are on the rise," Stueber points out. "This allows lenders, including the $100 million allocation, to feel confident in being able to move forward on new transactions.”

In the past few months, Summit has completed several hotel lending deals, four of which represent every area of the capital stack including the Marriott TownePlace Suites in Elko, NV (new construction); Travelodge in Page, AZ (acquisition); Holiday Inn Express in Rensselaer, IN (cash-out refinance); Comfort Suites Atlanta, (equity partnership and conversion).