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Hotel Gets $15.2M in Financing

BOSTON-Portland Street Hotel Inc. pulls off a real feat by nailing down financing for its Kimpton hotel project located downtown at 155 Portland St. Corus Bank is providing a $15.2-million construction loan for the 112-room boutique hotel.

By Naomi Grossman | Updated on June 17, 2002

BOSTON-A new 112-room hotel located in the heart of downtown has secured financing. Corus Bank closed on a $15.2-million loan to finance the Kimpton affiliated/managed hotel at 155 Portland St. The hotel is being developed by Portland Street Hotel Inc.

Nailing down financing for a hotel project has always been tricky but in the post-9/11 recession world it’s gotten even tougher. A number of hotel projects in the area–most notably the 1,120-room headquarters hotel being built by Starwood Hotels & Resorts Worldwide on the South Boston waterfront right near the new convention center–have had trouble financing their projects.

While Christopher Barkidjija, commercial loan officer at Corus, acknowledges the reality of the current climate for hotel financing, he tells GlobeSt.com that this deal had a number of elements that convinced the bank to invest. “Frankly, the developer was able to get us comfortable with the equity players,” he says. “Also, we are active in hotel construction lending and Kimpton is a well-known boutique hotel.” Barkidjija adds that the hotel’s location, in a major metropolitan area, also made the project attractive.

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