Friday, May 15, 2009

CHICAGO – Aries Capital is pleased to announce that the firm’s Chicago office recently arranged an $8,000,000 non-recourse loan to finance the expenses related to re-branding and renovating three separate hotel properties into LaQuinta Inn & Suites. A consortium of credit unions provided the investment.

Aries Capital arranged the loan for LaQuinta Suites after another firm unsuccessfully attempted to secure financing.

“Non-recourse debt is not readily available to the hospitality sector, especially when construction and reflagging are part of the equation,” said the Aries Capital originator. “Even highly performing assets with well capitalized borrowers are difficult to finance in this market. Fortunately, we were able to provide the Borrower with a creative solution which enabled the franchising requirements to be met.”

The three properties, previously Hampton Inn Hotels, are located in Canton, Ohio; Cleveland, Ohio; and Rochester, New York. The hotels were constructed in the 1990s and each feature approximately 100 rooms. The reflagging/construction and furniture, fixtures and equipment (FF&E) loan arranged by Aries Capital is a five-year, fixed rate mortgage with a 25-year amortization.