$23,500,000 PERMANENT FINANCING

One of the nation’s top-performing hotel real estate investment trusts (REITs) engaged BlueStone to optimize its capital structure and financing after becoming a publicly traded company. The REIT structure organized a portfolio of privately owned hotels that had local bank floating rate mortgages personally guaranteed by the Chairman and other executives. The REIT also wanted to tap their properties' appreciated value to recapture equity for further growth and acquisitions. The challenge was combining this disparate portfolio of properties to meet the borrower's goal of having one loan secured by a majority of its portfolio. All other investment banks engaged by the borrower prior to BlueStone could not accomplish this objective. BlueStone recognized that the only way to satisfy the borrower's requirements was to identify a lender willing to hold the loan on its balance sheet. With its deep hospitality knowledge, BlueStone was able to successfully demonstrate to the lender the quality of the portfolio and the experience of the borrower, thus paving the way to a highly competitive, non-recourse, cross-collateralized portfolio loan.