Historic Hotel Portfolio Refinance for Estate Planning

Assignment

In 2019, FinanceBoston was engaged by a Boston based owner and operator of a portfolio of historic inns and hotels located in various towns and cities. The client sought a long-term fixed rate and a non-recourse execution in order to prepare the portfolio well for estate planning and inheritance by the heirs. At this time in the cycle many lenders, including the long-time primary lender for the relationship, were not aggressively pursuing non-recourse lending for hospitality assets.

Approach

The client, after having attempted to secure a 10-year fixed rate with non-recourse or limited recourse, engaged FinanceBoston. By leveraging long-standing local lender relationships, FinanceBoston was able to secure the necessary financing via a two-bank syndicate, while keeping a complementary legal team in place from prior successful closings.

Results

A structure was agreed to between the owner and the lenders, which resulted in a successful transaction and the beginning of a new lending and depository relationship. In the process, the owner went from reliance upon a single lender, to having multiple capital sources for any future endeavors that may arise in order to grow the business for years to come.