DALLAS, TX – May 8, 2009 – Larkin Hospitality Finance, a national hotel investment firm specializing in financing hotel
properties, announced today that it recently closed the +$6 million refinancing of the Orlando Hampton Inn & Suites
for their clients, South Park Hospitality.
The refinance of the 83-room Orlando property follows closely behind Larkin’s recent $6.22 million refinance of a 111-room Hampton
Inn in Maryland. Both engagements involved sponsor equity recapture (cash-out).
Opened in November 2007, the Orlando Hampton Inn & Suites is owned and managed by the South Park Hospitality sponsors. The
seasoned operators have bucked national hospitality trends by driving continued marginal improvements to both ADR and occupancy.
The interest rate was in the mid-to-high 5% range on the 5-year term/25-year amortization loan program and will generate significant
annual mortgage payment savings for the borrowers.
“Larkin really stands out in their understanding of both hotels and the credit markets.”, said South Park’s Ronak Jasani, developer and manager of the Orlando property. “We typically work through banks we’ve done prior hotel deals with. But in the current environment
our banks wouldn’t come through for us. Having Larkin manage the entire refinance process for us was a win all the way around; I was able to focus on the management of our hotels during this challenging time, we achieved our payment saving and cash-out goals, and I developed a new bank relationship.”
2009 hotel financing insight
“As an indication of where cap rates have moved, our last two hotel refinance engagements came in at 9% and 9.25%,
respectively.”, said Cameron Larkin, managing director at Larkin Hospitality Finance. “It’s a more challenging credit
environment, no question. Thankfully interest rates remain low and we’ve continued to deliver for our clients, even during
the tough times.”
Larkin Hospitality Finance is a national investment-banking firm focused exclusively on meeting the debt and equity
financing needs of hotel owners and developers. Based in Dallas, the firm was founded by banking professionals with
over 16 years experience both financing hotels and the financing industry.
CONTACT
Cameron J. Larkin
Phone: (469) 916-8518
Email: clarkin@larkinhf.com