Jones Lang LaSalle Hotels Secures $42 Million in Refinancing for the Magnolia Hotel Houston (United States)
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Jones Lang LaSalle Hotels Secures $42 Million in Refinancing for the Magnolia Hotel Houston (United States)
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Category: North America & West Indies / Carribean islands - United States - Industry economy
- Group or hotel buyout
This is a press release selected by our editorial committee and published online for free on 2011-06-08
Jones Lang LaSalle Hotels announced today that its capital markets team has secured a $42 million,10-year, non-recourse, fixed rate loan from UBS Securities LLC to facilitate the refinancing of the Magnolia Hotel Houston on behalf of Stout Street Hospitality (formerly known as Magnolia Hotels).
The Magnolia Hotel maintains an irreplaceable location in the heart of Houston’s bustling downtown business district. The 314-room boutique hotel, which was developed by Stout Street Hospitality, opened in March 2003 following a meticulous rehabilitation and adaptive re-use of the historic Post Dispatch building. The property features 10,000+ square feet of meeting space, an 86-seat restaurant and a rooftop health club, swimming pool and sun terrace.
Jones Lang LaSalle Hotels Executive Vice President Mathew Comfort and Associate Mike Huth led the team on the financing effort. “Due to Stout Street’s adept management, the hotel weathered the recent economic downturn exceptionally well and rebounded nicely in 2010. As the nation’s fourth-largest city, Houston’s downtown lodging market boasts a broad array of stable demand generators that will continue to thrive in the near future,” said Matt Comfort.
The combined efforts of Stout Street Hospitality and the Jones Lang LaSalle Hotels team allowed for financing with loan proceeds that enabled Stout Street to retire both the first mortgage and the second mortgage previously encumbering the hotel. The financing also assisted Stout Street with their concurrent purchase of the remaining ownership interests in the hotel. “This is a very strategic recapitalization for the sponsor and a good fit for the lender,” said Mike Huth.
About Jones Lang LaSalle Hotels
Jones Lang LaSalle Hotels, the first and leading global hotel investment services firm, is uniquely positioned to provide the depth and breadth of advice required by hotel investor and operator clients, through a robust and integrated local network. In 2010, Jones Lang LaSalle Hotels provided sale, purchase and financing advice on $4.1 billion worth of transactions globally. In addition, advisory and valuation services were provided on over 1,000 assignments. The global team comprises over 210 hotel specialists, operating from 37 offices in 19 countries. The firm's advice is supported by a dedicated global research team, which produced 70 publications in 2010 in addition to client research. Jones Lang LaSalle Hotels' services span the hospitality spectrum; from luxury single assets and large portfolios to select service and budget hotels, resorts and pubs. Services include investment sales, mergers and acquisitions, capital raising, valuation and appraisal, asset management, strategic planning, operator selection, management contract negotiation, consulting, industry research and project development services. Jones Lang LaSalle Hotels' clients have access to the resources of its parent company, Jones Lang LaSalle (NYSE: JLL).
About Stout Street Hospitality
Denver-based Stout Street Hospitality, a privately held hotel management and development company, operates upscale boutique hotels catering to the sophisticated traveler. The company focuses on development, management, acquisition, re-branding, new construction and conversion of existing independent hotel properties. The core product line consists of award-winning, independent boutique hotels under the Magnolia brand that offer a style unlike that of trendy or branded hotels. The company currently operates hotels in Denver, Colo.; Dallas, Houston, and Bryan, Texas; and Omaha, Neb., and is exploring other markets for additional growth opportunities.
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