DALLAS— GE Capital's Franchise Finance business provided a $31.6 million term loan to NewcrestImage, LLC, to replace the short-term financing used for the construction of a dual-branded Marriott hotel in Grapevine, Texas.
NewcrestImage recently opened the 181-room Courtyard by Marriott intended to serve the short-stay traveler and a 120-room TownePlace Suites by Marriott directed towards long-stay customers. The conjoined hotels are located less than five miles from Dallas Fort Worth Airport.
“Dual branding is a concept that's growing in popularity and we're pleased to be at the leading edge of hotel development,” said Mehul Patel, chairman and chief executive officer of NewcrestImage. “We're targeting two different price points and hotel segments — in this case, select service and extended stay. We've achieved construction cost and operating efficiencies by sharing facilities and resources, such as van service, laundry facilities and meeting space, as well as the general manager and the sales force.”
NewcrestImage formed early last year through the merger of Newcrest Management and Image Hospitality.
“We were able to close on NewcrestImage's construction take-out loan immediately after they received their certificate of occupancy,” said Scott Andrews, a managing director with GE Capital, Franchise Finance. “Construction take-out financing is a valuable option to offer to experienced franchise hotel developers who are expanding their businesses.”
GE Capital, Franchise Finance specializes in financing mid-market operators with multiple units in the restaurant and hospitality industries.
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