Hurricanes can wreak havoc on coastal properties. In 2011, Hurricane Irene struck the North Carolina coast and left behind many damaged hotels and destroyed businesses. The then Sheraton, located directly on the oceanfront in Atlantic Beach, North Carolina, had to close due to damage sustained in the hurricane. While the previous owner made repairs to the property necessary to reopen, they could not generate the occupancy rates needed to avoid foreclosure. The property was then purchased by new ownership with plans to renovate the hotel and convert it to a DoubleTree by Hilton.
The new owner purchased the property with all cash and then turned to Access Point Financial (APF) to refinance the acquisition so they could redeploy their cash into other projects. APF was also able to provide additional financing to renovate and convert the property into a DoubleTree by Hilton. APF was able to structure bridge financing within two weeks of application allowing the owner to quickly begin renovations to convert and stabilize the property. APF’s understanding and experience in the industry enabled the company to structure a loan uniquely tailored to the new owner’s needs.
The hotel reopened as the DoubleTree by Hilton Atlantic Beach in 2013. The 200-room full service, nine-story hotel features two restaurants, indoor and outdoor swimming pools, a fitness facility, gift shop and a bait shop. The hotel also features 15,000 square feet of meeting space with a 5,400 square foot ballroom. The renovated property is an anchor in the Atlantic Beach area and has helped return the city to a desired beach destination while also supporting local businesses. Since the owner was able to quickly renovate, convert and stabilize the property using APF’s bridge financing, this enabled him to refinance the property at loan proceeds 37% higher at a lower interest rate.
Courtyard Atlanta Conyers | Conyers, GA
Funded in 96 days!
In 2009, a lack of funds and challenges with failures in the banking industry halted construction on a new Best Western Plus in Metro Atlanta. The hotel was slated to be the first new lodging facility in this part of Conyers, Georgia since the hotel boom during the Olympics in 1996. Located at a prominent intersection in Conyers, the stalled project had become a local reminder of the depth and impact of the recession. In 2012, the new ownership bought the partially-built hotel with a vision to complete construction and open under the Courtyard by Marriott flag.However, to secure the funds necessary to complete the project, the new owner needed to find a financial institution willing to look past the previous issues with the property and understand the potential of bringing the property to completion under a different brand. The new owner sought a non-traditional short-term bridge loan to complete the project.
The owner turned to the Access Point Financial (APF) because of a long established 20-year relationship with its Principals. APF provided the owner with funds to recapture some of the cash used in the acquisition of the property as well as complete construction. Given APF’s deep understanding of the situation and their prior experience with the owner and the proposed brand, APF was able to structure a unique solution and supply the debt to meet the owner’s objectives.
Opening in the second quarter of 2014, the hotel’s strong location accelerated ramp-up which allowed them to successfully refinance the property at a lower interest rate. Without the bridge financing from APF, which provided them the time needed to complete the property, this would not have been possible. The 4-story hotel, located on 1.48 acres, has 60 standard guest rooms and 20 suites as well as meeting space, a swimming pool and restaurant. The renovation project brought in as many as 100-200 new people per day to the area to support local businesses. Completion of the hotel revitalized the landscape, created new jobs and added to the tax base of Conyers.
Radisson | Hartford, CT
Located in the Central Business District of Hartford, Connecticut, the 350-room full service, 18 story hotel was built in 1972 to serve as a Holiday Inn. It was then converted to a Crowne Plaza in 1998, and operated as such until 2011, when it became a Ramada Plaza.Knowing the hotel’s location was in close proximity to the Connecticut Convention Center and the XL Center as well as several local businesses, the current owner recognized an opportunity to acquire the hotel through a foreclosure scenario. They determined they would convert the Ramada Plaza to a Radisson Plaza hotel. The owner sought financing to acquire the hotel and to complete required renovations needed to convert the hotel to the Radisson Plaza brand in a timely manner.
They turned to Access Point Financial (APF) for a Short Term Mortgage/Bridge Loan to enable the owner to complete the acquisition and property improvement plan (PIP) required for the brand conversion. The owner worked with APF because of their prior experience with APF and their knowledge of the hospitality industry. APF was able to underwrite and close the loan in less than a month which allowed the owner to facilitate a quick closing to acquire the property and begin renovating the hotel.
The rebranded Radisson Plaza opened in January 2014. Amenities at the 350-room hotel include an outdoor pool and patio, a cocktail lounge and bar area, a full service restaurant, 8,800 square feet of meeting space, a business center and a fitness center.
Embassy Suites | Southfield, MI
Funded in 29 days!
The Embassy Suites Southfield, located in Southfield, Michigan, was contracted to be sold to new ownership. Along with the sale of the property, the franchisor was requiring the new owner to renovate the 239-room property to bring it up to its current brand standards. The new ownership needed to find financing to complete the acquisition and fund the first phase of renovations outlined in Hilton’s property improvement plan (PIP).
The owner turned to Access Point Financial (APF) to assist with funding because of the company’s knowledge and experience in the industry. In less than a month, APF successfully structured and closed a bridge loan which provided the owner with the necessary funds to complete the acquisition and finance the initial renovations required within the PIP.
Within a year of acquiring the property, the hotel was achieving RevPAR beyond its competitive set and the owner was able to successfully refinance the property based on the work completed to date. The new debt provided the owner with an additional 56% more in loan proceeds which enabled them to begin the second phase of the renovation which is scheduled to be completed in the 1st quarter of 2015. The 239-room full service, nine-story hotel offers an indoor swimming pool, whirlpool, 24-hour fitness center, business center, sundry shop, complimentary breakfast, complimentary shuttle service, 9,500 square feet of meeting and banquet space and the Franklin Street Grill and Lounge.
Holiday Inn Resort | Jekyll Island, GA
Funded in 40 days!
In 2013, the owner of the independent Oceanside Inn and Suites on Jekyll Island, Georgia, decided to convert the property into a Holiday Inn Resort. The original property was a 178-room full service, two story, exterior corridor independent hotel built in 1960. The hotel had a full service onsite restaurant, 8,500 square-feet of meeting space, outdoor pool, business center, beach volleyball court and a playground. In order to complete the conversion and required renovations, the owner needed additional financing to complement its in place construction funding which was currently at a 50% Loan to Cost (LTC).
The owner looked to Access Point Financial (APF) for CapEx/FF&E financing to provide the additional funds needed to complete the renovation and conversion project. CapEx/FF&E financing can be used to help fund a portion of the hotel construction costs, to include the equipment within the General Contractor’s construction budget. APF was able to provide the owner with an additional 30% giving them overall leverage of 80% on the project. APF’s long history and understanding of the industry enabled them to structure a unique solution and supply the funds to meet the owner’s objectives.
The hotel features 157 guest rooms, an extensive fitness center, expanded guest amenities including water-based and beachfront activities, new and enhanced food and beverage outlets and expanded meeting facilities. The rebranding of this hotel enables the ownership to add additional employees as well as increase both ADR and occupancy. This has increased the local tax base incrementally bringing more people to Jekyll Island which improves the overall local economy.
Holiday Inn Rock Island – Quad Cities | Rock Island, IL
Five loans creatively funded within an average of less than 20 days!
Centrally located in Rock Island, Illinois, the Holiday Inn & Conference Center—Rock Island, originally built in 1963, was undergoing renovations to its guest rooms and hallways. In 2012, the owner sought temporary bridge financing to complete the renovation and operate the hotel until it stabilized and was able to secure long term financing based upon its post-renovation situation.
The Holiday Inn & Conference Center turned to Access Point Financial (APF) because of an established relationship with its principals as well as its recognized endorsement by the hotel brand. APF provided the owner with a bridge loan to refinance their current debt and provide financing to complete their renovation. The property used a portion of the proceeds for renovations and the remaining loan balance retired all existing debt. Given APF’s understanding of these types of financial situations, APF was able to structure a unique solution and supply the funds to complete the renovation and meet the owner’s long term objectives.
The 8-story, 175-room full service Holiday Inn & Conference Center completed renovations in 2013. Additional amenities include 9,335 square feet of meeting space, an indoor pool, fitness center, business center and full service Bennigan’s Irish American Grill Lounge Restaurant. Upon completion of the renovation, the property ramped up quickly achieving higher RevPAR levels than its competitive set. This allowed the owner to successfully refinance the property receiving 12% more in loan proceeds at a lower interest rate. Without the bridge financing from APF, which provided them the time needed to renovate and stabilize the property, this would not have been possible.