3 – 13 – 13
Hotel capital is making a renewed resurgence. As capital continues to chase core assets down to tight yields, GSP is working with a debt fund willing to accept more risk in exchange for a wider return. As a portfolio owner of hospitality, their focus is exclusively hotels, but in every segment of the capital stack; senior/mini-perm notes to 75% w/sub-10% debt yield, mezzanine/pref equity, Joint Venture Equity. DPOs and bridge/reposition requests are considered below break-even coverage. Transactions must size for a minimum of $15,000,000 and assets must be in a Top 50 MSA market. Debt pricing starts at 6.75% so not competitive with the CMBS market on rate but will fund further up the capital stack and accept more risk than most Wall Street underwriters.