This refinance successfully concludes the financial restructuring this hotel was forced to undergo due to the pandemic’s impact on the hospitality sector.
This refinance successfully concludes the financial restructuring this hotel was forced to undergo due to the pandemic.
The sequencing of the restructure included:
- Negotiating with the CMBS lender’s Special Servicer on a bring current of their loan
- Raising preferred equity to recapitalize the balance sheet
- Repositioning the hotel by funding and completing a Property Improvement Plan that modernized all 168 rooms and ground floor public spaces
- Retiring the maturing CMBS lender
- Refinancing with Access Point to extend the senior loan’s maturity date
- Establishing additional reserves for heightened future stabilized operations.
The Hilton Garden Inn at Cleveland Hopkins Airport was originally developed by Ceres Enterprises and The Orlean Company in 1998. It features a restaurant and lounge, 3,300 square feet of meeting space, an indoor pool, a fitness center, and a market pantry. Strategically located along I-480, just north of the airport, the renovated hotel will be poised to be the top lodging choice for over 10 million travelers annually, as well as primed to service the $3 billion Cleveland Hopkins Airport master plan.
“The pandemic presented unprecedented challenges for this hotel and submarket, but BGL’s advisory was paramount to our ownership group as we navigated the disruptions in the capital markets,” said David Crisafi, President of Ceres Enterprises. “From negotiating with the Special Servicer to sourcing new capital, BGL operated as a true partner to deliver the best possible outcomes. We look forward to our new partnership with Access Point Financial and ushering this hotel into the next phase of its lifecycle.”
Tags: David Crisafi, Ceres Enterprises, Hilton Garden Inn, Cleveland Hopkins International Airport, BGL
