X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

(To read more on the debt and equity markets, click here.)

NEW YORK CITY-AFC Hotel Finance Group has arranged $46.8 million in acquisition financing for three hotels. The Sheraton Four Points in Allentown, PA; Somerset Hills Hotel in Warren, NJ; and the Inn at Somerset in Basking Ridge, NJ were purchased for a little more than $38 million and will receive more than $5 million in renovations, according to Michael Sonnabend, a principal with AFC.

NGH Hospitality purchased the three properties in two different transactions, but the financing was packaged together. AFC secured an institutional joint-venture partner, financing from two different lenders and kicked-in its own capital as part of the transaction.Sonnabend tells GlobeSt.com that the unique mix of financing was utilized so that NGH could have significant capital to continue growing its business over the next five years. A large portion of their acquisition funding would have been used to acquire these properties so “It allows them to have funds for future deals.”

The two New Jersey properties will receive a complete renovation, revamping both the common areas and every guest facility. The 112-key Somerset Hills Hotel, located at 200 Liberty Corner Rd., and the 112-room Inn at Somerset, at 80 Allen Rd. will both be branded after renovations complete. The hotels are both independent at the moment, and Sonnabend did not know the hotel brand the hotels are likely to join.

The Sheraton Four Points, at 3400 Airport Rd., is near the Lehigh Valley International Airport and contains 149 rooms.

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
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

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

  • Free unlimited access to GlobeSt.com'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 ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.