Sonnenblick-Eichner arranges financing for four-hotel portfolio

Archer Hotel Austin

Sonnenblick-Eichner Company has arranged $92 million in first mortgage debt to refinance a portfolio of four hotels totaling 592 rooms.

The financing consisted of four separate non-recourse, non-cross collateralized loans from three different lenders. Sonnenblick-Eichner Company was able to arrange for a money center commercial bank to provide 10-year fixed financing on each of the two Hyatt House properties, and LIBOR-based floating rate financing from two regional banks on the Archer and Hilton Garden Inn properties.   

The portfolio is comprised of the following hotels:


Like this story? Subscribe to IHIF!

The hospitality industry turns to IHIF International Hotel Investment News as the must-read source for investment and development coverage worldwide. Sign up today to get inside the deal with the latest transactions, openings, financing, and more delivered to your inbox and read on the go.

“The financings were all competitively bid,” said Elliot Eichner, Sonnenblick-Eichner principal. “The recently completed Archer Austin closed with only three months of operational history. The loan also provided for an earn-out allowing the borrower an opportunity to increase loan proceeds as the property ramps up.”

“The various financing structures met our client’s expectations in terms of locking in advantageous long-term fixed rates on two of the assets, and a flexible LIBOR-based facility on the other properties,” added Patrick Brown, also a principal of Sonnenblick-Eichner Company.

Suggested Articles

The XR Event Planner places event planners, buyers and hotel sales staff in a virtual reconstruction of an event space.

The collaboration will develop full-service property-management capability that will combine with Sabre’s existing hospitality solutions.

When developing an on-property spa, hoteliers should consider what its strategic objective will be and plan accordingly.