GRP Capital is pleased to announce the loan closing for a Fairfield Inn & Suites by Marriott in Southwest Florida. A Fairfield Inn & Suites property is classified as an upper midscale chain by Smith Travel Research (STR). Since the beginning of the COVID-19 pandemic, lenders have shown greater interest in budget properties. Therefore, closing this loan indicates that the lending market is widening. GRP Capital Managing Director Krishan Patel as well as GRP Capital President Rick Patel worked closely with the multiple partners and the lender to secure this complex, high value loan for our clients.
Challenges and Strengths of an Upper Midscale Property:
• Finding the correct pricing: A property like a Fairfield Inn & Suites competes among a larger spread. They compete with both the top and bottom echelon of properties. They have to find a way to price themselves to achieve solid ADR and occupancy, which requires constant attention to rates.
• Proving value to the customers: Upper midscale properties, including this Fairfield Inn & Suites, have had to make changes during the pandemic. Some areas that required changes? A serve yourself breakfast buffet, open coffee areas in the atrium and even daily housekeeping duties.
• Solid Management Practices: Hotels that are in the upper midscale range typically face higher maintenance expenses and also multiple potential revenue sources, like meetings and conferences. It is critical for hands-on management to monitor expenses and capitalize on revenue potential.
Krishan Patel upon closing this loan stated, “Closing this loan was very important to our clients. They had kept the hotel functioning during the hard times of 2020 and 2021, but needed permanent financing ahead of a loan maturity. The partnership group was large and was comprised of very experienced investors and hoteliers, all of whom had input into the decision. Our job was to help organize the process, while allowing all of the partners to feel included in the closing.”
Our GRP Capital team specializes in finding the right lender for each project. We save our clients time and money, as we research the best choices for their funding sources. Our experience allows our clients to find funding that is project-appropriate and will allow for sufficient cash flow. If you are considering becoming a first-time (or second or third time!) buyer, we can assist you.