Premier Capital Arranges $22.5M Financing for Four Hotels in Separate Transactions

Lending Pace Up 20 Percent over 2007

BELLEVUE, WA, Sept. 4, 2008—Premier Capital Associates, LLC, a national, full-service real estate investment company specializing in obtaining debt for hospitality real estate, announced today that it had arranged and successfully closed on four loans in separate transactions totaling $22.5 million in the last 60 days.

The total, added to transactions consummated earlier in the year, represents a 20 percent increase in the company’s loan volume over the same period for 2007 for the two-year old mortgage brokerage firm.

The hotels include the Hampton Inn & Suites, Jackson Miss.(top left photo); Homewood Suites, (middle right photo) Overland Park, Kan.; the LaQuinta Inn & Suites, (bottom left photo) Portland, Ore.; and Fairfield Inn, (bottom right photo) Kennewick, Wash.

The transactions ranged from $4 million to nearly $10 million per asset and are typical of the kinds of properties with which lenders are still comfortable, according to Greg Morris, (top right photo) managing director at Premier Capital.
Six-Month Financing Outlook

“Midmarket properties without food and beverage with proven cash flows can find lenders in today’s credit markets,” Morris added. “Larger transactions, for the most part, have stepped to the sidelines and will likely stay there for at least several more quarters, when lenders will have a clearer picture of the political and economic future.”

“The abundance of negative media coverage about the debt markets does not reflect current lending conditions,” said Jeff McKee,(top left photo) managing director at Premier Capital.

“There are a substantial number of loans being made. We are a boutique mortgage brokerage company entering our third year and are 20 percent ahead of last year’s activity at the same time. We have a very active pipeline and have a network of willing lenders.”

He noted that traditional lenders, especially local banks, are still actively financing hotels, but market conditions are constantly shifting.

“Lenders want to work with companies who specialize in obtaining hospitality debt placement. They want the confidence of dealing with experienced companies that they know and that have a proven track record.

"Hotel transactions today generally require 30 to 35 percent equity, up from 25 percent earlier this year and approximately 15 percent in early 2007,” he said.

“Current requirements are closer to historic norms, and deals still pencil out because interest rates remain quite attractive.”

Morris pointed out that the stronger brands in major markets are the preferred property type, both acquisitions and refinancing.

“Ironically, the lower transaction volume resulting from the current economic climate means that lenders are able to respond much more quickly than a year ago,” he said. “However, they have less interest in higher risk loans, such as new construction, conversions and older assets that have a high PIP requirement.”

Premier Capital Premier Capital Associates, LLC, located in Bellevue, Washington, is a national, full-service real estate investment company specializing in debt for hospitality and other income-producing commercial real estate, with relationships across the United States.

The company arranges debt for construction loans, acquisition, refinancing, reposition and mezzanine financing.

For additional information, please contact either Greg Morris at 425-957-0700 or Jeff McKee at 425-957-0600. Or, visit the company’s Web site: http://www.premiercapitalassoc.com/.

Contact: Jerry Daly or Chris Daly, (703) 435-6293, jerry@dalygray.com