:
US: Joint venture will use loan to pay off existing mortgages and for “general business purposes”.
The joint venture between Pebblebrook Hotel Trust and Denihan Hospitality Group, which owns six hotels known as the Manhattan Collection has secured the $410.0 million interest-only, non-recourse, secured loan at a fixed annual interest rate of 3.67 per cent.
The loan has a term of five years and is secured by a first mortgage on the Affinia Manhattan, Affinia Shelburne, Affinia 50, Affinia Gardens and The Benjamin, comprising a total of 1,491 guest rooms.
Raymond D. Martz, chief financial officer for Pebblebrook Hotel Trust said: “We are thrilled with the completion of this debt financing and our ability to access the debt markets at historically attractive terms. Our new debt financing has more favourable terms, a comparable interest rate and significantly lower risk than the previous outstanding loan. As a result of this financing, Pebblebrook has no debt maturities until 2016 and we continue to have 12 hotels unencumbered by debt, representing nearly $1.0 billion of invested assets.”
www.pebblebrookhotels.com
www.denihan.com
