Transaction Overview
GSP successfully placed financing on 2 hotels for a Sponsor emerging from a bankruptcy restructuring. The loans were timed to close simultaneously with local financing for some smaller assets as the Sponsor’s entire portfolio was involved in the restructure. Property specs: (1) 80 room limited service hotel, built in 2007. Amenities include indoor pool, fitness center, spectacular lake views. (2) 100 room limited service hotel built in 1992 with major renovation in 2002 (including adding another floor of rooms). This hotel was the international flagship hotel for a major brand. GSP arranged financing with a CMBS lender who became comfortable with the narrative of the restructuring at this leverage. Sponsor, hotel sector and the submarket were hit hard by the credit crisis. The Lender increased the loan amount during the application process in order to make the structure work.
