First American Realty Arranges $2.1 mil Ramada Acquisition Loan

. October 14, 2008

DALLAS, TX, September 25, 2006. First American Realty Associates, LLC recently arranged a $2,100,000 acquisition loan on a Ramada Inn in Kilgore, Texas. The 85% LTV loan included $300,000 for an extensive renovation of the 80-room property. The Wyndham Worldwide-franchised Kilgore Ramada is the 510th hotel financed by First American Realty.

Cameron J. Larkin, Senior Vice President of Business Development for First American Realty, arranged the financing on behalf of sponsor Mahesh (Mike) Patel, managing partner of MMD Hotel, LP.

Patel has over 18 years experience as both owner and manager of several hotel properties.

"My experience with First American Realty and Cameron Larkin has given me a new understanding of professionalism and punctuality. If it were not for Cameron's undeniable persistence and experience, my hotel acquisition deal would not have been closed in the timely manner as I expected it to," said borrower Mike Patel.

"As is often the case in change-of-ownership transactions, we were under pressure to accommodate a short closing timeline," said Larkin. "Procuring a terrific financing program for our clients is imperative. We further differentiate ourselves by providing the highest level of project management to ensure on-time execution."

Brock Hotel Group of Grapevine, TX represented the sellers in the transaction.

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 October 2019...

Revenue Management: Focus On Profit

Revenue Management is still a relatively new profession within hotel operations and as such, it continues to evolve. One significant trend in this area is a shift away from using revenue as the foundation to generate key performance indicators (KPIs) and to instead place the emphasis on profit. Traditionally, revenue managers have relied on total revenue per available room (TrevPAR) and revenue per available room (RevPAR) as the basis of their KPIs. Now, some revenue managers are using gross operating profit per available room (GOPPAR) as their primary KPI. This puts profit at the center of revenue management strategy, and managers are increasingly searching for new ways to increase the profitability of their hotels. Return on Investment is the objective of any hotel investment, so it is only logical that profitability and ROI will be emphasized going forward. Another trend is an expanded focus on direct hotel bookings. Revenue managers know that one way to increase profitability is to steer guests away from online travel agencies (OTAs) and book directly with the hotel. This tactic also reinforces brand identity and loyalty, and encourages repeat business. In addition, it provides a valuable platform to market the hotel directly to the customer, and to upsell room upgrades or other services to them. Another trend for revenue managers involves automation in their software programs. Revenue management systems with automation are far more desirable than those without it. Automating data entry and logistics increases efficiency, allowing managers to spend more time on formulating strategy. As a bonus, an automated system helps with aggregating and interpreting data. The October issue of the Hotel Business Review will address these developments and document how some leading hotels are executing their revenue management strategies.