Hotel Online  .Special Report


Neptune Hospitality Advisors Arranges Financing
for Purchase of Palm Springs Area Hotel
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SAN DIEGO, California - September 16, 2004 - Michael D. Armstrong, President of Neptune Hospitality Advisors, Inc., is pleased to announce his firm arranged first mortgage financing for the purchase of the two-year old 120-room Hilton Garden Inn in Rancho Mirage, California located in the heart of the Coachella Valley.  Neptune arranged the $10 million three-year floating rate loan through a national investment bank. 

“Hotel debt capital continues to be plentiful in the current environment.  The strong sponsorship and high quality asset


Hilton Garden Inn Palm Springs/Rancho Mirage
  71-700 Highway 111
Rancho Mirage, CA 92270
 accommodated a competitive process for the financing opportunity, allowing us to effectively negotiate a relatively high-leveraged loan at a very low overall effective cost of borrowing for our client,” commented Stan Kozlowski, Vice President of Neptune. 

The hotel was acquired by American Property Management Corporation.  Based in San Diego, APMC was recently ranked as the 10th largest independent hotel management company by Hotel and Motel Management magazine in March 2004 and the 16th largest hotel owner by Hotel Business magazine in September 2004.

“This transaction is particularly noteworthy for borrowers as our implied interest rate on the implied mezzanine or junior tranche of the loan, from seventy to eighty percent of the overall capital structure, was at a low level that we have not yet seen from our other lending sources.  On the surface, this would imply that the mezzanine market continues to be even more competitively priced as new entrants buoy the supply of capital to the sector and existing, traditionally senior lenders push loan-to-cost percentages past seventy percent, in turn driving overall mezzanine and implied mezzanine spreads down,” added Gavin Davis, Director of Corporate Finance for Neptune.

Neptune Hospitality Advisors, founded in 2001, is a national real estate firm exclusively dedicated to the hotel industry with offices in San Diego, Dallas, Boston, and Honolulu.  Neptune specializes in hotel brokerage, debt and equity financing, and development advisory services.

For more information, contact Michael Armstrong at (858) 964-5678 or email mike@neptuneha.com or view the company website at www.neptuneha.com

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Contact

Neptune Hospitality Advisors, Inc.
The Aventine Building
8910 University Center Lane
Suite 500
San Diego, CA  92122
P. (858) 964-5678
F. (858) 964-5679
www.neptuneha.com
.
Also See: Neptune Hospitality Advisors Arranges Acquisition Financing of Nashville Hotel / June 2004
Neptune Hospitality Advisors Represents Purchaser and Arranges Acquisition and Renovation Financing of Albuquerque Hotel / March 2004


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