Knighthead Funding Originates $8.5 Million Loan to Complete Construction of Holiday Inn & Suites Near Savannah, GA

USA, Westlake Village, California. November 08, 2018

Knighthead Funding, LLC has funded an $8.5 million construction loan for the completion of a 104-room Holiday Inn & Suites in the Savannah submarket of Pooler, GA.

The sponsor, a Georgia-based hotel development and management company whose portfolio currently includes flags such as Hilton, Marriott and Holiday Inn had funded the entire development with all equity prior to Knighthead's involvement. Due to liquidity constraints, the Sponsor needed a creative source of capital to get comfortable in funding a project that was approximately 50% completed.

The Greenwich, CT-based lender was able to recognize the strong hotel fundamentals of the Savannah market, and underwrite and fund the loan quickly keeping construction downtime and potential losses to a minimum, according to Knighthead Vice President Brian Sullivan who led the origination team.

"Judging by the quality of construction that had been completed, and the local experience of the sponsor who had already secured a 20-year franchise agreement from IHG, we were confident the hotel would perform well against the competitive set," said Sullivan. "Based on the occupancy and the average daily rate commanded by other hotels in the submarket, we believed the sponsor could meet its projected RevPar within the first 12 months of operation."

The hotel is located in a prime I-95 corridor location that services the Savannah Airport. In addition, the hotel will benefit from numerous demand drivers including Savannah's popularity as a tourist destination and its growing economic base anchored by the military, education, healthcare and aerospace sectors, according to Sullivan.

When completed in 2019, the Pooler Holiday Inn & Suites will feature 104 guest rooms, restaurant and lounge, outdoor pool with sundeck, fitness room, business center and market pantry.


Pooler Holiday Inn & Suites
/ SLIDES
Tags: Knighthead, Knighthead Funding, Knighthead Capital, hotel, hospitality, financing, lending, CRE, real estate, loan, construction, construction lending

About Knighthead Funding

Media Contact:

Bruce Beck
President
DB&R Marketing Communications, Inc.
T: 805-777-7971
E: [email protected]
W: http://www.dbrpr.com

Subscribe to our newsletter
for more Hotel Newswire articles

Related News

Choose a Social Network!

The social network you are looking for is not available.

Close
Coming up in November 2021...

Architecture & Design: Wellness is Key


Like every other facet of hotel operations, architecture and design firms are adapting their work to ensure the safety and well-being of both guests and staff. New ways to bring Wellness into hotel spaces are being explored and these solutions are taking on many forms. Hotel designs are incorporating more open floor plans, open air spaces, high ceilings, outdoor areas and operable walls into their spaces. Guests no longer want to be packed into tight areas. More "biophilic" elements are also being incorporated, offering guests the sense of being outdoors. Another trend is the reimagining of guest rooms to support remote work capabilities. Some hotels are converting empty guest rooms into office spaces, complete with effective lighting and suitable backgrounds for video conferencing. Dedicated Zoom Rooms are also becoming increasingly popular. The main goal is to provide guests with a positive experience in a space that feels safe and comfortable. These are some of the architecture and design subjects that will be covered in the November issue of the Hotel Business Review.