STATE COLLEGE, PA—Locally-based hotelier Shaner Hotel Holdings L.P. has closed on its $226.6 million commercial mortgage-backed securities loan with JP Morgan Chase. The firm says the deal paves the way for the company to reposition and expand its hotel portfolio.
The company states it would use some of the loan proceeds to buy out longtime business partner Almanac Realty Investors' stake in 17 Shaner Hotel Holdings properties across the United States, Shaner's largest hotel portfolio. Shaner emphasized it will continue its relationship with Almanac through its investment in the Shaner Finance Fund, a fund that provides rescue capital and bridge financing to hospitality property owners.
Lance T. Shaner, chairman of the Shaner family of companies and CEO of Shaner Hotel Holdings, says the AAA-rated 10-year fixed loan provides a number of advantages to the company. “We believe this loan not only affords us additional financial stability and strengthens our balance sheet, it also provides the flexibility to optimize our hotel portfolio's performance moving forward while reducing our risk profile,” he says.
Plato Ghinos, president of Shaner Hotel Group, says the CMBS loan establishes a strong financial foundation for the company's ambitious growth plans. “This refinancing initiative concludes a year-long effort to secure long-term debt for all of Shaner's properties and will reposition the company for continued quality growth in the hospitality industry,” Ghinos says.
Shaner Hotel Group's current portfolio is comprised of more than 40 hotels with over 5,000 rooms in 17 states and two countries.
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