CHESAPEAKE, VA–Hotel loans are starting to make their way into conduit deals again after the volatility of the first half of the year. Most recently, and in this part of the country, there is New York City-based PMZ Realty Capital's $38-million loan it secured to refinance a four-property Marriott and Starwood portfolio in Virginia.
The portfolio includes the 136-room Aloft Chesapeake, 148-room Fairfield Inn & Suites by Marriott Williamsburg, 131-room SpringHill Suites by Marriott, and 121-room Residence Inn by Marriott Chesapeake Greenbrier.
“With the CMBS market starting to stabilize, PMZ was able to help the borrower refinance this portfolio within 45 days from the time the loan application was signed in order to meet the loan maturity date,” PMZ President Peter Berk said in a prepared statement.
Los Angeles-based Vista Capital Co., also announced it recently structured $28 million in financing for three hotels: Crowne Plaza in Indianapolis, a Holiday Inn Express in Louisville, and a Homewood Suites in Chicago. The deals were funded by three different capital sources, including a CMBS lender.
But with the hotel cycle nearing its end, there are also examples of companies wanting to move away from debt and in general deleverage. To give one: Summit Hotel Properties reported that it has repaid one CMBS loan of $5 million and it expects to repay another in the amount of $13.4 million using its unsecured revolving line of credit. As a result, more than 60% of its portfolio EBITDA will be unencumbered with less than 5% of the REIT's total debt maturing through 2018, an executive said during the REIT's recent earnings call.
CHESAPEAKE, VA–Hotel loans are starting to make their way into conduit deals again after the volatility of the first half of the year. Most recently, and in this part of the country, there is
The portfolio includes the 136-room Aloft Chesapeake, 148-room Fairfield Inn & Suites by Marriott Williamsburg, 131-room SpringHill Suites by Marriott, and 121-room Residence Inn by Marriott Chesapeake Greenbrier.
“With the CMBS market starting to stabilize, PMZ was able to help the borrower refinance this portfolio within 45 days from the time the loan application was signed in order to meet the loan maturity date,” PMZ President Peter Berk said in a prepared statement.
Los Angeles-based Vista Capital Co., also announced it recently structured $28 million in financing for three hotels: Crowne Plaza in Indianapolis, a Holiday Inn Express in Louisville, and a Homewood Suites in Chicago. The deals were funded by three different capital sources, including a CMBS lender.
But with the hotel cycle nearing its end, there are also examples of companies wanting to move away from debt and in general deleverage. To give one: Summit Hotel Properties reported that it has repaid one CMBS loan of $5 million and it expects to repay another in the amount of $13.4 million using its unsecured revolving line of credit. As a result, more than 60% of its portfolio EBITDA will be unencumbered with less than 5% of the REIT's total debt maturing through 2018, an executive said during the REIT's recent earnings call.
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