ValueXpress can obtain CMBS conduit loans for AAHOA members who own limited and full-service hotels in small markets. “Traditionally, CMBS conduit lenders do not like small markets and will not make hotel loans there,” notes Michael D. Sneden, Executive Vice President at ValueXpress. “But through our long-standing relationships with AAHOA members who own primarily limited-service hotels in small towns, we have been able to show our CMBS conduit lenders low defaults on our closed transactions with AAHOA members in small markets. So they will make loans in small towns for us.”
“Small markets are becoming an increasing part of our CMBS conduit loan business,” according to Jay Bhakta. “We recently closed and are working on transactions in a variety of small markets.”
Recent transactions include hotels owned by AAHOA members in Snyder, Texas (population 10,000), Pratt, Kansas (population 6,800), Guymon, Oklahoma (population 11,000), Lone Pine, California (population 2,000) and Lapeer, Michigan (population 9,000). And as many AAHOA members own hotels in small markets, ValueXpress will continue to develop CMBS conduit loan relationships to serve members in these markets.