Johnson Capital and Pacific Southwest Close Holiday Inn Refinance for LOK

• 
  SAVE
• 
  SHARE
• 
  TEXT SIZE
• 
  PRINT
• 
  COMMENT
• 
  PDF

. October 14, 2008

FEBRUARY 6, 2008. Hospitality industry veteran Dr. Donald W. Wise is pleased to announce that the Global Hospitality Industry practice of Johnson Capital, partnered with Steve Bridges, Principal, Pacific Southwest Realty Services, and Dennis A. Mac Donneil, Principal, of the Lok Group of Companies, to successfully close the refinance of the Holiday Inn Express Hotel & Suites in Sebastopol, in the Sonoma Wine Country.

"This was a challenging refinance for several unusual reasons," said Wise. "The borrower was approved by Marriott International to convert the hotel to a Fairfield Inn & Suites by Marriott. Among the key issues was getting a release of $1,250,000 in proceeds to execute the renovation and Product Improvement Plan and Brand mandated standards for the conversion - therein was the riddle."

Johnson Capital is committed to offering the hospitality industry proprietary loan programs for Brand based-lending for Hilton, IHG, Marriott, Wyndham, and Choice. Individual loans under these programs will range from $4 to $20 million.

Most hotels of the Hilton Garden Inn, Hampton Inn and Suites, Holiday Inn Express, Marriott Springhill Suites, and Fairfield Inn and Suites venues, by example, need a complete Property Improvement Plan ("PIP") renovation at least every ten years. This can range from $8,000 to $15,000 per guestroom.

As a rule, lenders are very reluctant to allow borrowers to pull substantial funds back out of a refinance - even for Brand mandated standard PIP improvements - and herein is the basis of the Johnson Capital proprietary lending programs being currently orchestrated by the Global Hospitality Industry practice of the firm.

Johnson Capital was recently featured on International Bloomberg television:

http://www.bloomberg.com/avp/avp.htm?clipSRC=mms://media2.bloomberg.com/cache/vH4HCPuwIpeA.asf

The Johnson Capital Global Hospitality Industry investment banking practice provides high touch investment advisory, investment banking, transactional (brokerage) services, and financing placement of both debt and equity in the $10,000,000 to $300,000,000 range. The Johnson Capital Express hospitality loan program lends between $1 million and $5 million, but on a case-by-case basis, will lend up to $10 million. These combined services are primarily focused on the Hilton Garden Inn, Hyatt Place, Cambia Suites, Marriott Fairfield Inn, Staybridge Suites, Towne Place Suites, Marriott Springhill Suites, and Holiday Inn Express for both construction and acquisition/refinance debt placement. In full-service hospitality properties, this includes the upscale, luxury and boutique market tiers for domestic and International hotels, both branded and unbranded, as to resorts, gaming, condominium-hotels, timeshare, fractional and mixed-use projects, with and without golf, that have a lodging component.

Capital market programs include:

---| Debt placement - First mortgage, construction, subordinated/mezzanine debt, preferred equity financing for acquisition and refinance of single-asset and portfolio transactions, and debtor in possession;

---| Equity placement - New construction, renovation, recapitalization;

---| Corporate real estate services - Disposition of single hospitality assets and portfolios and/or loan sales;

---| Bridge loans - Purchasing and participating in the placement of bridge loans of existing assets, and raw entitled land, on a case-by-case basis;

---| Advisory services - Preparation of sophisticated financial and/or market analysis of properties, including valuations, hold versus sell analysis, feasibility studies, investment underwriting, transactional due diligence, and partnership restructuring and dissolutions;

---| Investment services - Asset management and development and acquisition services to hotel real estate investors requiring third-party expertise;

---| Distressed and REO hotels - representing numerous private equity funds seeking to acquire distressed and "broken" hotels;

---| Distressed commercial paper - representing numerous hedge funds seeking to acquire distressed and "broken" hotel debt; and

---| Brokerage intermediary services - existing assets, sites, and portfolios.