NEW YORK— A portfolio of eight full-service hotels owned by a joint venture of HEI Hospitality, Rockwood Capital and Olympus Real Estate has been refinanced. Jones Lang LaSalle Hotels arranged the $200-million worth of refinancing for the joint venture. Jones Lang LaSalle Hotels was able to generate 15 bids for the refinancing transaction from various lenders. In the end, the joint venture, which is known as HRO, chose Lehman Brothers as the lender because it not only offered a loan with a competitive spread, but it was also able to address other key borrower objectives, including prepayment flexibility. The hotels included in the newly refinanced portfolio are the Sheraton Atlanta Buckhead, Sheraton College Park, Sheraton Danbury, Sheraton Norfolk, Hilton Sonoma County, Westin Stamford, Westin Detroit Southfield and Sheraton Ferncroft. The refinancing was made complicated by the fact that one of the hotels in the portfolio is in the process of being sold and another hotel was closed for half of 2004 for a major renovation project. Furthermore, HRO had been seeking to retire existing debt and provide distribution to the partners.
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