SCOTTSDALE, Arizona—GE Capital, Franchise Finance has debt available for select-service hotels, according to Senior VP Scott Andrews.
Overall, the hotel industry is seeing conservative underwriting, Andrews said via email. GE Capital, however, is working with borrowers to provide “flexible” deals.
GE Capital looks to lend to experienced, multiunit, select-service, hotel operators across the United States. “Nationally recognized” brands also are preferred, he said. The company has been active in refinancing as well as providing capital for hotel acquisitions.
Referencing the lending sector at large, Andrews said yield has become a bigger factor in underwriting.
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| Scott Andrews, GE Capital |
“I can’t talk to the types of yields other lenders look for, but I can tell you debt yield has fewer variables to consider, such as the net operating income and the loan amount, and represents a cleaner benchmark,” he said.
The company has been an active lender of late. For instance, the company provided newly originated senior financing as part of Wheelock Street Capital LLC’s acquisition of 12 select-service hotels for approximately $116 million from affiliates of Inland American Real Estate Trust.
Also, GE Capital provided $15 million in financing for Summit Hotel Properties. The deals helped refinance debt on Courtyard by Marriott and Springhill Suites by Marriott properties. The Courtyard by Marriott received $9.75 million in financing while the Springhill Suites by Marriott received $5.25 million.
Overall, the company has a $1-billion hotel portfolio.
“… we will continue to grow our brand and provide our customers with financing to help them grow, compete, and prosper.”