Since 2011 when the CMBS conduit loan market resumed, ValueXpress has made approximately $200 million in CMBS conduit loans to AAHOA members who refinanced approximately $140 million of debt. This means that $60 million of equity was returned to borrowers, most of which was reinvested in additional hospitality opportunities.
“One of the primary benefits of CMBS conduit loans is the unrestricted cash-out feature that is not available with any other hotel loan product,” commented Jim Brett, head of underwriting at ValueXpress. “Borrowers can use this “cheap” money to make more investments and grow their presence in the hospitality industry.”
“We all know the classic AAOHA member success story, whereby the young hotelier came to the United States and started with a small roadside independent motel, then grew into their first franchise property, eventually becoming a multi-property, multi-franchise owner today,” said Jay Bhakta. “Well, many of these stories happened because cash-out CMBS conduit loans provided the cash equity to grow. And ValueXpress wants to help develop more of these success stories by providing the cash needed to grow through our CMBS lending program.”