Transaction Overview
George Smith Partners arranged construction financing for a 99-Room Hampton Inn Limited Service Hotel in the heart of Coastal California Wine Country. Uniquely situated off of Highway 101, our Sponsor purchased the land mid-2014 within a short drive of 60 operating vineyards. Set to open mid-2016, the hotel will feature a contemporary ranch design with wooden roofs and awnings. Guest rooms will feature refrigerators, microwaves, free high speed internet and 32” HDTV with free movie channels. Our Sponsor is an experienced hotel developer and owner, having built 9 hotels ground-up and performing major renovations on several others. GSP identified a non-bank lending source able to provide non-recourse, high leverage construction financing. Funded loan proceeds increased during the application process as construction costs were being finalized. Sized to 80% of costs and priced at LIBOR + 7.5%, the three year term offers 2 – one year extensions.
