Hunter Hotel Advisors closed on $60.2 million in financing for seven hotel properties. The transactions involved loans ranging from $5.73 million to $12.8 million and financing up to 85% of the total cost.
The financing consists of a series of SBA 7(a) and 504 loans for the following properties: Extended Stay America Washington D.C. Chantilly Airport, VA; Extended Stay America Washington D.C. Chantilly, VA; Candlewood Suites Louisville Airport, KY; Candlewood Suites Indianapolis Airport, IN; Staybridge Suites Denver Tech Center, CO; Residence Inn Lake Charles, LA; and Fairfield Inn & Suites Atlanta Vinings/Galleria, GA. The transactions involved loans ranging from $5.73 million to $12.8 million and financing up to 85 percent of the total cost.
“The year 2024 ended on a strong note and a tailwind that’s propelling us into 2025,” said Adeel Amin, SVP, capital markets, Hunter. “A renewed appetite for traditional bank loans is emerging, particularly from local institutions, while innovative structures like variable-rate SBA 504 programs are also gaining traction. As the market finds its footing in this evolving landscape, lending is increasingly dictated by debt-service coverage ratios (DSCR). Consequently, government-backed loans are poised to remain a critical component of the financing landscape for loan request requiring maximum leverage (up to 80%) or low DSCR’s.”
Hemal Patel, CEO, Prada Hotels, added, “We’re thrilled to expand our portfolio into Chantilly. The extended-stay market continues to thrive and the locations are ideal for a hands-on operation such as ours. Given the volatility in the markets, financing presented some hurdles, but Adeel had effective solutions and guided us through the entire process.”
“Lotus Hospitality Investments is expanding its portfolio with the acquisition of two Candlewood Suites properties in Kentucky and Indianapolis,” according to Minesh Deva with Lotus Hospitality Investments. “Securing optimal financing for the underperforming assets proved challenging, however we successfully navigated the complexities of government-backed lending to maximize leverage for both deals, while also structuring the financing to allow for a timely exit upon stabilization.”
