Aries Capital Arranges $57 Million CMBS Loan for Gulf Coast Hotels in 32 Days
Aries Capital is pleased to announce that the firm’s Senior Vice President, Jeff Bucaro, has arranged a $57 million CMBS loan for three Gulf Coast hotels on behalf of the Borrower, Innisfree Hotels. The loan closed in just 32 days from application, and provided the borrower with a 10-year non-recourse loan to refinance existing debt and fund seasonality reserves. The loan also provided substantial cash back to the Borrower.
Innisfree Hotels had two other financing options in hand, including remaining with their existing lender. However, despite the tremendous risk of not closing the loan by end-of-month, the Borrower chose Aries’ option due to Aries’ reputation in the hospitality field, the volume of hotel loans Aries has closed, and the strength and expertise of Aries’ capital partners. “We met with the borrower in February and were able to deliver a compelling alternative in just two days,” said Bucaro. “Despite the loans maturing in March, we made the borrower comfortable in our ability to execute on it.”
The portfolio included a Hilton Garden Inn and Holiday Inn Express in Orange Beach, Alabama and a Hampton Inn in Pensacola Beach, Florida, all of which are Gulf Front properties. Securing financing for hotels in the Gulf Coast has been a challenging endeavor due to the negative impact of the Deepwater Horizon oil spill of 2010. Many hotels along the Gulf experienced significant cancelations and occupancy declines due to the perception that the area was tainted by the spill. In fact, most of the beaches remained pristine, and had no physical impact from the spill.
“It was a risk to consider a new firm so close to our maturity date and with the complexity of our deal. Aries delivered and fulfilled their term sheet outline without exception and in record time. We are very pleased that we were fortunate enough to have Aries Capital represent Innisfree Hotels,” said Julian MacQueen, CEO and Founder of Innisfree Hotels.
Aries Capital Chairman and CEO Neil D. Freeman commented, “We were impressed with Innisfree Hotels’ leadership and properties. And with the oil spill in the rearview mirror, they capitalized on an improving Gulf Coast market. We aggressively pursued the deal because we felt confident that we could overcome its complexity and secure an attractive financing solution. We welcome the opportunity to work with Innisfree Hotels again in the future.”
Founded In 1985 by Julian MacQueen, Innisfree Hotels operates on the principles of fun, relaxation and exceptional service. Innisfree owns and operates major brand hotels and resorts in Gulf Front locations along the Gulf Coast.