Cronheim Hotel Capital finances acquisition for Pennsylvania Holiday Inn

Holiday Inn in Breinigsville, Pa. Photo credit: IHG

Cronheim Hotel Capital closed its second Delta conversion this year by financing the acquisition of a Holiday Inn in Breinigsville, Pa. The property will be reflagged to a Delta by Marriott. It is owned by Allentown Asset Management, an affiliate of Infinity Asset Management.

CHC secured financing of $12.5 million at 75 percent of the sponsor's total cost, including purchase price plus a product improvement plan. The non-recourse floating-rate loan has a three-year term.

The Holiday Inn Breinigsville is located on the west side of Allentown, Pa., in the Lehigh Valley industrial corridor. The 175-key property was built in 1988 and contains 14,000 square feet of meeting space—including a 10,660-square-foot ballroom—which is the largest group meeting space in west Allentown.


Like this story? Subscribe to Operations & Technology!

Hospitality professionals turn to Operations & Technology as their go-to source for breaking news on guestrooms, food & beverage, hospitality and technology trends, management and more. Sign up today to get news and updates delivered to your inbox daily and read on the go.

The growth of warehousing and manufacturing activity in the vicinity of this property over the past decade, along with a notable increase in the residential population and attendant service businesses, created a strong hospitality demand profile.

Cronheim Hotel Capital and its affiliate, Cronheim Mortgage Corp, provide debt and equity for a wide array of commercial real estate. The principals of CHC have six decades of combined experience in commercial real estate capital markets and have completed more than $8 billion of capital transactions. CHC has closed numerous hotel financings from a range of capital sources, including its insurance company correspondents, for whom they service a portfolio in excess of $2 billion.

Suggested Articles

In 2020, Hotel Management is spotlighting hotel operators from all corners of the U.S. This installment focuses on companies based in the South.

Driftwood Capital plans to open the 198-room Canopy by Hilton Tempe (Ariz.) Downtown early this spring.

Tye Turman, who is leaving Marriott International after more than 30 years, will take the reins of the San Antonio-based company March 1.