Arbor Closes $3.2M Fannie Mae DUS® Loan for Marsh Highland Apartments in Carrollton, TX

UNIONDALE,  NY (Nov.  6, 2009) - Arbor Commercial Funding, LLC (“Arbor”), a wholly-owned subsidiary of Arbor Commercial Mortgage, LLC, announced the recent funding of a $3,200,000 loan under the Fannie Mae DUS® product line to finance the 102-unit complex known as Marsh Highland Apartments in Carrollton, TX.

The 10-year loan amortizes on a 30-year schedule and carries a note rate of 5.54 percent.

The loan was originated by John Edwards, (top right photo)  Vice President, in Arbor’s full-service Boston, MA lending office. “This financing represents a great opportunity to provide low leverage at an attractive rate for a strong owner/operator,” said Edwards. “In addition, we recognize the continuing efforts of our long-term relationship with Fred Vogell of Mortgage Resources in orchestrating this financing.”

Contact:
 Ingrid Principe, P: 516.506.4298, F: 516.542.2555, iprincipe@arbor.com, http://www.arbor.com/
Follow us on Twitter @ arbor1

Lodgian Reports 2009 Third Quarter Results

ATLANTA, Ga., November 5, 2009—Lodgian, Inc. (NYSE Alternext US:LGN), one of the nation’s largest independent hotel owners and operators, has reported results for the 2009 third quarter ended September 30, 2009.

Third quarter 2009 total revenue for continuing operations declined 17.6 percent to $50.6 million, compared to the same period in 2008.

 Loss from continuing operations was $(39.8) million in the 2009 third quarter, compared to a loss of $(2.3) million in the 2008 third quarter.

 The 2009 third quarter loss was driven primarily by a $34.2 million impairment charge largely related to seven hotels which are expected to be returned to their lenders.

Six of these hotels are expected to be returned to the lender after unsuccessful negotiations to extend and modify the Merrill Lynch Fixed Rate Pool 3 loan agreement.

The “35 continuing operations hotels” comprise those Lodgian properties that were not held for sale as of September 30, 2009. Lists of properties, both continuing operations and held for sale, are shown in the company's complete  press release.

For a complete copy of the company's news release and financials, please contact Debi Neary Ethridge, Vice President, Finance & Investor Relations,, (404) 365-2719,  dethridge@lodgian.com

Paramount Hotel Group Named Manager of Three Florida Distressed Hotels

FAIRFIELD, NJ—Paramount Hotel Group, an independent hotel management and ownership group, today announced that it has been named by institutional lenders in two separate transactions to operate three hotels currently in foreclosure and has an active pipeline of additional distressed properties.

 The company also will act as receiver for one of the properties. The hotels, which together have more than 500 rooms, are located in Florida and include two branded and one independent property.

“We have a long, proven track record with distressed hotel operations and are working closely with institutional lenders, special servicers and regional banks to help them determine and execute the right strategies to recover the optimum value of their hotel assets,” said Ethan Kramer, (top right photo) Paramount’s president.

“Our senior management team has been involved in the successful work-out and turn-around of more than 50 hotels in markets across the nation. Additionally, Paramount has established relationships with every major national franchisor in the U.S.

“Our approach is not just caretaking the property," Kramer says.. "We have take-over SWAT teams on stand-by who can take control of a property with just 24-hours notice.

"Our immediate goal is to stabilize the asset in terms of cash management, human resources, life safety and security. Subsequent to our assessment, we develop strategic options tailored to the Lender’s objectives. T

"he essential needs of the operation to continue as a going concern are identified and if capital is available for improvement, we recommend how best to deploy. Maximizing return on investment and generating the highest sale price on disposition is the ultimate driver in distressed hotel cases.”

Kramer noted that Paramount expects that opportunities to manage distressed hotels will expand rapidly over the next 12 to 18 months.

 “There is an unprecedented number of troubled hotel loans that will need to be resolved over the near-term. In many cases, these properties have been neglected and suffer from deferred maintenance.

"We have an in-house construction team that can quickly assess these problems and determine realistic costs to remediate. If the lender so desires to expend funds for capital improvement, Paramount will provide detail budgeting for renovation and repositioning, thereby enhancing value.

“As owners ourselves, we bring a seasoned eye to the problems these hotels face. We provide honest assessments of the properties’ potential based on more than 25 years of operational experience with distressed assets.

"Lenders want to recoup as much of their investment as possible without undertaking unnecessary risks of losing additional capital. We provide the operational and asset management expertise to help them realize their goals.”

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

Best Western Bowery Hanbee Hotel Receives Director’s Award for Quality

NEW YORK, NY – The Best Western Bowery Hanbee Hotel  (centered photo below) in New York City has received the Best Western Director’s Award for outstanding achievement in quality standards.

The Director’s Award recognizes Best Western International hotels in North America that meet or exceed cleanliness and maintenance inspection scores of at least 950 points out of a possible 1,000. Hotels must also meet Best Western’s requirements for design and high guest satisfaction scores in order to qualify.

“The Best Western Bowery Hanbee Hotel is committed to providing quality accommodations for our guests,” said General Manager Raymond Sun. ”Our staff has worked very hard to achieve this level of excellence and we are delighted to receive this important symbol of distinction from Best Western.”

Newly built in 2008, the Best Western Bowery Hanbee Hotel is located at 231 Grand Street in the heart of downtown New York City. The hotel is ideally situated between Chinatown and Little Italy in Lower Manhattan, surrounded by some of the most vibrant New York City neighborhoods such as Tribeca, Soho and the Lower East Side.

 Abundant subway access is a few blocks from the hotel. City Hall, Battery Park (above centered photo) , Trinity Church and PACE University are within walking distance. All 102 guestrooms feature a modern, comfortable design with 32-inch flat panel TVs and high-speed Internet access. The 100% non-smoking hotel also offers complimentary continental breakfast, Wi-Fi in the lobby, and a fitness center.

The Best Western Bowery Hanbee Hotel is owned by Ben Wong, founder and principal owner of New York-based Wok and Roll Restaurants,(above centered  photo)  and operated by Interstate Hotels & Resorts, the nation’s largest independent hotel management company (http://www.ihrco.com/).

 For more information about the Best Western Bowery Hanbee Hotel in New York City, please visit www.bw-boweryhanbeehotel.com or call Best Western International toll-free (800) WESTERN.

Contact:

Raymond Sun, General Manager, Best Western Bowery Hanbee Hotel, (212) 925-1177 raymond.sun@ihrco.com,
http://www.bw-boweryhanbeehotel.com/

HFF secures $120M recap for W Hotel & Residences in Austin, TX

DALLAS, TX – The Dallas office of HFF (Holliday Fenoglio Fowler, L.P.) announced today that it arranged a $120 million recapitalization for the W Hotel & Residences, (rendering centered below) a luxury mixed-use project under construction in Austin, Texas.

Working on behalf of Stratus Properties, Inc. and the Canyon-Johnson Urban Fund, HFF senior managing director Whitaker Johnson (top right photo)  placed a new five-year construction loan originated by CLG Hedge Fund, LLC, a hedge fund affiliated with Beal Bank Nevada.

This loan is replacing an original $165 million construction financing through Corus Bank that HFF secured on behalf of the borrowers in 2008. As part of the recapitalization, Stratus and Canyon-Johnson are also contributing $45 million to the project.

Due for completion in December 2010, the W Hotel and Residences will have 252 guest rooms and suites. In addition, approximately 159 residential units, in one- to four-bedroom layouts, will be located on floors 18 to 37 and will feature views of Lady Bird Lake, the Hill Country and the city skyline.

 Hotel guests will have access to the W’s signature Living Room experience and Whatever/Whenever, the hotel’s 24-hour concierge service that provides guests with the ultimate in amenities at any hour. On-site amenities will include an elevated garden incorporating a swimming pool and bar, a spa, and approximately 54,000 square feet of retail and office space.

There will also be an entertainment venue operated by Live Nation and a new studio for KLRU-TV’s Austin City Limits show. The W Hotel and Residences is located at 2nd Street and Lavaca in downtown Austin’s 2nd Street District.

“HFF was pleased to line up new construction financing to mitigate any risks associated with the health and stability of the in-place senior construction lender, Corus Bank. Construction never wavered throughout the process and upon completion, the W is going to be an outstanding addition to the downtown Austin area,” said Johnson.

Stratus Properties is a diversified real estate company engaged in the acquisition, development, management and sale of commercial, multifamily and residential real estate properties located primarily in the Austin area.

CLG Hedge Fund, LLC is a hedge fund affiliated with Beal Bank Nevada that focuses on commercial real estate lending. CLG originates loans from $10 million to more than $550 million on all types of collateral, including income properties, raw land, land development and construction, with emphasis on individual pricing based on each asset’s specific characteristics and risk profile.

Beal Bank Nevada is a well-capitalized financial institution with capital in excess of $1.8 billion and assets in excess of $5.5 billion as of June 30, 2009. Beal Bank Nevada is a member of the FDIC.

Contacts:

Whitaker M. Johnson, HFF Senior Managing Director, (214) 265-0880, wjohnson@hfflp.com
Anthony Sassine, CLG Hedge Fund, LLC, (214) 395-8101, ASassine@clghedgefund.com
Kristen M. Murphy, HFF Associate Director, Marketing, (713) 852-3500, murphy@hfflp.com

 (Downtown Austin photo bottom right)