"Consistent with the predominance of our client's locking in long-term rates, the ownership of this portfolio paid off Libor-based financing in favor of a 10-year fixed rate deal," says Sonnenblick-Eichner principal Elliot Eichner. The cross-collateralized loan has a 30-year amortization schedule and a fixed interest rate in the mid 5% range.
The majority of the collateral for the transaction is the 151-room Roosevelt Hotel, which is located in the one block from the Washington State Convention Center in Downtown Seattle. The Gateway property is located adjacent to the Sea-Tac International Airport. The Coast Wenatchee Hotel is the dominant full-service hotel in that city, and is connected to the Wenatchee Convention Center and Performing Arts Theatre by a covered sky bridge.
"I've done hundreds of millions of dollars with these guys," Eichner tells GlobeSt.com. "It's a very well performing portfolio with excellent sponsorship."
In 2003, Paramount and Northwest Hospitality Group of Boise, ID let their franchise agreements with West Coast Hotels roll and partnered with Coast Hotels & Resorts of Vancouver, BC. Paramount Hotels executive Matt Murphy told GlobeSt.com at that time that both hotel groups decided a regional brand was the best fit this time around rather than a national brand.
"After we explored other opportunities we looked at one another and said 'it makes sense for us to do business together,'" says Murphy. "Opening up the American division of Coast Hotels was a way we could have more control over marketing dollars and how we were represented to our customers; we wanted to control our own destiny."
As a result of the agreement, the two hoteliers' 14 three- and four-star hotels throughout the Western US adopted the Coast Hotels & Resorts brand, which is also on 20 hotels in Western Canada. The US hotels are located in Washington, Oregon, California, Alaska and Hawaii.
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