CORTE MADERA, CA— Karl Hoagland, chairman, president/CEO of Larkspur Hospitality Development and Management Company, LLC (LHDMC), an independent hotel company, announced the completion of a refinancing agreement with Greenwich Capital Markets (GCM). LHDMC raised $107 million of new capital in a $90 million first mortgage provided by GCM and $17 million in preferred equity financing. Besides allowing LHDMC to repay a prior loan that was maturing at the end of this year, the $90 million floating rate first mortgage, with its four-year term, provides LHDMC with favorable long-term financing. LHDMCs portfolio of 16 owned and operated hotels closed out the year with eight consecutive months of market share gains and cash flow preservation exceeding hotel industry averages. And the company has aggressive growth plans, which center on developing Larkspur hotels in select locations, acquiring hotels and adding management contracts. “Now that we have completed the private financing and have an established history of revenue growth as well as a solid corporate infrastructure and people resources, we are looking to acquire and develop new hotels, as well as share that expertise with third party hotel owners by managing hotels where we can create the same results for them,” said Hoagland. For 2003, a new phase of substantial external growth is expected. Larkspur Hospitality is actively looking for independent or branded three- and four-star hotels as well as in-fill hotel sites on the West Coast in strategic business or resort locations. According to Hoagland, “We have over $100 million of committed growth capital and were looking for strategic hotel acquisitions or development opportunities.”
