Knighthead Funding Originates $8.5 Million Loan to Complete Construction of Holiday Inn & Suites Near Savannah, GA
November 6, 2018 9:36am
Greenwich, CT (November 6, 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, 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.
holiday inn & suites pooler,
Knighthead Funding, LLC is a national real estate finance company specializing in loans for the acquisition, renovation, construction and refinancing of commercial real estate across all asset classes. Knighthead originates loans for its managed real estate debt funds and Knighthead Annuity & Life Assurance Company. Knighthead Funding is an affiliate of Knighthead Capital Management, LLC, a New York-based SEC registered investment management firm.
Contact: Bruce Beck
Hospitality Financial Leadership: Nobody Gets to Be Wrong, Everyone is Wrong, No One Gets to Be Right, Everyone is Right
Sonnenblick-Eichner Arranges $36.3M of Acquisition Financing for Doubletree by Hilton Hotel Campbell Pruneyard Plaza Campbell (Silicon Valley), California
Sonnenblick-Eichner Company Arranges $26,500,000 of First Mortgage Financing for The Inn at the Pier, Pismo Beach, California
Hospitality Financial Leadership: She Said She Was Born Without the Financial Gene
Hospitality Financial Leadership: Roger Penske & The Hotel PMS
Hospitality Financial Leadership: The 5 Hidden Costs of Being Branded
Knighthead Funding, LLC Originates $36 Million Loan to Refinance Newly Constructed Luxury Hotel at Hartsfield-Jackson Airport in Atlanta
Hospitality Financial Leadership: Bring Multi-Tasking to an End for Hotel Leaders
Hospitality Financial Leadership: Understanding the Importance and Use of The Reserve for Capital Replacement
Hospitality Financial Leadership: The Matching Principle
Hospitality Financial Leadership: The Top 10 Interview Questions About The Hotel's Finances for a General Manager and the Best Answers
Hospitality Financial Leadership: OTA’s and How Hotels Can Best Use Them
Thorofare Capital Provides $17 Million Loan to Refinance Boutique Hotel in Downtown Miami
Hospitality Financial Leadership: Going Down the Road – Part 1
Hospitality Financial Leadership: Expectations vs. Agreements
The History of Financing Boutique Hotels
Hospitality Financial Leadership: What’s Missing With Labor Planning Tools?
Hospitality Financial Leadership: Trading Places
Spirides Arranges $7.8 Million Hotel Construction Loan for New Holiday Inn Express in Rock Hill, SC
The Future of Private Equity and Private Markets
Please login or register to post a comment.