Two companies have taken steps to provide financial support to hospitality projects in three states across the country.
Peachtree Group
Commercial real estate investment firm Peachtree Group has originated $114.6 million in bridge loans to recapitalize two hotels owned by real estate development and investment firm McWhinney. The transactions include the Hyatt Centric Congress Avenue Austin, Texas, and the Hyatt Place Denver Peña Station in Colorado.
Peachtree originated a floating-rate bridge loan with a 48-month term for the 246-room Hyatt Centric Congress Avenue Austin. The site was acquired in October 2019 by McWhinney to construct the hotel. The Hyatt Centric opened in February 2023 and is the newest addition to its competitive set. The property represents a modern blend of Austin’s vibrant culture and McWhinney’s commitment to quality development.
The company also originated a fixed-rate bridge loan with a 60-month term for the 226-room Hyatt Place Denver Peña Station. Opened in late 2019, the hotel’s stabilization was delayed by the pandemic’s impact on the hospitality industry. The recapitalization loan provides McWhinney additional time and resources to stabilize performance and maximize the property’s potential.
Cronheim Hotel Capital
Cronheim Hotel Capital has secured more than $25 million to refinance the existing debt and capitalize planned improvements on the Sound View and Harborfront boutique hotels in Greenport, N.Y., on the North Fork of Long Island.
The Sponsor, Eagle Point Hotel Partners, has renovated and upgraded the properties.
“We pivoted multiple times during the course of the assignment in response to evolving market conditions and partnership needs which meant creating multiple options from bank to [commercial-backed mortgage securities] to preferred equity to bridge,” David Turley of CHC said in a statement. “Our ability to provide options from this wide array of very different capital sources was a huge value add to this transaction.”