24 October 2024

HUNTER HOTEL ADVISORS SECURES $34.55 MILLION IN ACQUISITION FINANCING

Hunter Hotel Advisors (“HUNTER”) announced today the successful closing of $34.55 million in financing for five hotel properties. Senior Vice President of Capital Markets, Adeel Amin, executed the closings on behalf of the firm.

The financing consists of a series of SBA 7(a), 504 and 504 Green loans for the following properties: Extended Stay America Las Vegas Midtown, Extended Stay America Greensboro North, Country Inn & Suites Alpharetta, HomeBridge Extended Stay and Baymont Inn Jessup. The transactions involved loans ranging from $4.5 million to $12.75 million, financing between 77 percent and 93 percent of the total purchase price and renovation costs.

“Adeel's unique insights into capital stacks and his ability to determine when to maximize bank financing versus equity are invaluable,” said Ricky Patel of Durga Hotel Management. “The Country Inn acquisition, with its limited operational revenue, presented significant challenges. Adeel's guidance streamlined the process, maximized leverage and developed a strategic exit plan that addressed our concerns about holding times and renovation expenses.”

“Securing 85 percent financing for an asset that doesn't generate enough income to service the debt is no easy feat,” said Michael Bowie of HomeBridge Extended Stay. “It becomes even more difficult with seller financing and when we prefer to avoid flagging the property. Partnering with Hunter Hotel Advisors was instrumental in overcoming these challenges, thanks to their strong lender relationships.”

Amin noted, “Despite its nuances, SBA financing continues to offer the cheapest capital for hospitality owner-operators and small funds. It enables up to 85 percent financing even on acquisitions of up to $20 million while still offering conventional loan rates or better. Given its versatility, SBA financing allows owner-operators and small funds to optimize capital allocation for properties yielding minimal or no cash-on-cash returns or those requiring extensive rehabilitation.”

Led by Senior Vice Presidents Adeel Amin and Charlie Ryan, HUNTER’s Capital Markets team specializes in customized financing solutions, including debt and equity placements and subordinate financing. These offerings are designed to fit the unique situation of each client, echoing the firm’s broader strategy to expand its influence in the hospitality sector.

"In today’s challenging financial markets, where securing financing and closing transactions has become increasingly difficult, Adeel’s expertise and persistence are making a significant impact,” said HUNTER’s President and CEO Teague Hunter. “His ability to navigate complex deals, maintain strong lender relationships and structure creative solutions is truly impressive. Despite the hurdles posed by the current economic environment, Adeel is consistently getting deals done, proving his value and commitment to delivering results."