ValueXpress has arranged a $4,050,000 CMBS conduit loan for the purchase of a Homewood Suites by Hilton limited-service hotel. The Homewood Suites – Jackson/Ridgeland is a 3-story, 91-room interior corridor property constructed in 1997.
A major Property Improvement Plan (PIP), expected to cost $2 million, will be completed by the new owner in a “staged” format to minimize off-line rooms and target room renovations during slack periods. The property was sold by Hospitality Investors Trust (HIT), which is a non-traded hotel REIT. HIT was not interested in completing the PIP, and as a result, performance has trended down in recent years amid new supply and lack of investment in the property.
“The transaction was challenging because property performance continues to deteriorate,” said Michael Sneden, Executive Vice President at ValueXpress. “We presented a thorough business plan to the chief credit officer with specific areas of operating cost savings and a marketing plan to stabilize sales during the completion of the PIP, with a strategy to move ADR on completion of the PIP.” The plan was well received, and the loan was approved and closed within the contract period.
To get a free, no-obligation quote for your hotel CMBS conduit loan, contact a member of the ValueXpress team: Mike Sneden (firstname.lastname@example.org), or Gary Unkel (email@example.com).