New Best Rate Venture Eyes VA Market

VIRGINIA BEACH-This beach resort will be a significant focus of Best Rate Travel, Inc.’s new hotel and operating subsidiary, Best Rate Hotels Inc. The Boca Raton, FL-based firm is entering the development arena, CEO Adrian Stone tells GlobeSt.com, with $100 million of debt financing.

It has inked its first deal already with REIT One Inc. to build a $150-million, 268-room resort here. Best Rate Hotels is currently negotiating with Starwood Hotels to manage the property, and will own 20% of the property.

Best Rate Hotel will be contributing $30 million to the transaction, the company reported in a press release. That will leave an additional $70 million in financing to be invested between the Virginia Beach and Florida markets in the immediate term. Best Rate is planning to partner with equity providers in other transactions, although Stone would not provide the leverage percentage they might contribute. “It could range across the board and in some cases we might be 100% responsible for the note,” he says.