To: Mastio, David
Subject: New Hotel Loan Program
Subject: New Hotel Loan Program
New Hotel Loan Program
HREC, as a correspondent for a new private mortgage lender, is currently sourcing hotel loans of $12 to $35 million for select-service hotels, and some full service assets. The loan program is geared toward 125 – 350 room Marriott, Hilton, Hyatt, Starwood and Intercontinental branded hotels.
· This non-recourse program is available for acquisitions, refinance and repositioning.
· Loans can be up to 85% of the project/asset value.
· Rates will range up to 10%, on either a fixed or floating rate basis, depending on the needs of the borrower, and can include accrued interest features depending on DCR. Loans will have a participating feature to be determined based on incremental appreciation in the project’s value and net cash flow.
· Loan terms will range between 3 – 7 years and will have certain lockouts and yield maintenance prior to maturity. Lender charges 2 to 3 points origination fee, which is inclusive of HREC fee.
· This is a balance sheet lender that will fund hotels nationwide. These loans will not be securitized and the lender will be the servicer for life of the loan.
The Lender is an experienced hotel player who understands the sector and how to value assets, believes that the market will recover, and understands the importance of good Sponsorship.
Other loan programs are available as well. Please contact Geoff Davis (303) 267-0057, x102, gdavis@hrec.com, or Mike Armstrong 760.452.2255,marmstrong@hrec.com, for more information.