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: bruce@dbrpr.com
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 February 2020...

Social Media: Social Listening Tools

The reach and influence of social media is staggering. Nearly 3 billion people use social media daily, posting a range of messages, selfies, images, and everything in-between. According to HubSpot, almost 4 million posts are uploaded to the major social networks every single minute! That's an astounding amount of content and it is crucial for hotels to skillfully use social media in order to effectively compete. From establishing a suitable brand identity and voice to creating content across all the major networks (Facebook, Twitter, Instagram, Pinterest, etc.), the goal is to actively engage consumers and to eventually convert them to customers. Some hotels are initiating online contests as a way to attract new customers, while others are rewarding customers with discounts who subscribe to the their email lists or follow their social media pages. Another recent strategy is to employ social media listening tools that track what people are posting online about their businesses. These tools allow hotels to monitor - or listen to - what's being said about a brand across the entire social web, and this can prove to be very valuable, unfiltered information. Social listening permits hotels to be aware of people's opinions about their business, industry or competitors, and some of these tools even listen beyond social media platforms. They also monitor publicly available information on blogs, forums, news outlets and websites. Some listening tools are more focused on gathering and analyzing data, while others offer more engagement-oriented features, which allow hotels to interact with people right from the platform. Often the information that is gleaned from these listening tools ends up being the most authentic, unbiased insights a business can get. The February Hotel Business Review will document what some hotels are doing to successfully integrate social media strategies into their operations.