Los Angeles-based CIM Group this week originated two hotel loans totaling $63.87 million as part of the investment management company’s increasing its lending in the sector.
The firm funded a $34.97 million senior loan on behalf of a joint venture between Monarch Alternative Capital and HHM Hotels on the Aloft/Elemental hotel in Orlando and a $28.9 million loan to Newbond Holdings on the Aloft in Tampa.
The financings are part of a larger push to expand hospitality lending from full-service properties to include select and extended stay hotels. CIM Group is responding to what it sees as an upswing in business and leisure travel as the US moves past the covid-19 pandemic, with particular demand for mid-tier properties in markets across the US. Additionally, the lender group for hotels loans has been contracting, making it harder for sponsors to secure loans.
The 244-key Aloft/Element, a dual-branded Marriott hotel, is split between casual and extended stay and is located at 5730 and 5750 Central Florida Parkway in Orlando. The Aloft Tampa Downtown is a 130-key hotel that was opened in 2014. The property is an adaptive reuse of an office building constructed in 1965.
CIM Real Estate Debt Solutions provided more than $3.8 billion of commercial real estate loans across the US for acquisitions, recapitalizations, and new construction projects in 2022.