BETHESDA, MD-An acquisition financing deal closed for the 390-room Hyatt Regency Bethesda with the assistance of Sonnenblick-Goldman Co. Acting on behalf of borrowers Rockwood Capital Corp. and the Meridian Group, the real estate investment firm orchestrated a $76-million loan for the property. The funds come from Goldman Sachs in the form of a floating-rate, five-year first mortgage. A spokesman for Sonnenblick-Goldman tells that the financing package covers about 70% of the entire acquisition price. For Meridian, the hotel is not exactly a new acquisition; the company co-owned the property with GMAC, which sold its part to Meridian and Rockwood, Sonnenblick-Goldman’s Andrew Oliver explains to

Located near such vital destinations as the National Institutes of Health and the US Department of Homeland Security, Hyatt Regency Bethesda carries the address of One Bethesda Center and boasts a coveted spot atop a Metro station. The 12-story hotel is part of the greater Bethesda Metro Complex, which consists of a 350,000-sf office facility, a 19,000-sf food court and a parking facility capable of accommodating as many as 1,330 vehicles.

The hotel itself, which underwent a $5.3-million renovation in 2002, features a 7,300-sf ballroom and 19 meeting rooms. Meridian purchased the hotel and office building together as a package for $122 million back in 1999.

Competition to provide the financing for the hotel purchase was steep. Sonnenblick-Goldman president Steve Kohn says in a statement that “the Bethesda Hyatt’s long established presence in the heart of Bethesda, the strong Hyatt brand and top quality sponsorship created great interest within the financial community.” The timing of Meridian and Rockwood’s purchase is just right, it seems, as the hospitality industry attempts a rebound and makes the long reach for its pre-2001 numbers.

“While the world is by no means safe from terrorist threats, travelers are gradually coming to grips with the reality that the world has changed,” Marcus & Millichap explains in its most recent Hospitality Research Report. “In terms of international travel, inbound arrivals are expected to rise by 5% both in 2004 and 2005.” Business travel is expected to see a 4.2% increase over last year’s numbers, with even better numbers to come in 2005.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.



Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join now!

  • Free unlimited access to's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.