Thomas Financial Group has secured a $19.97m USDA Business & Industry loan, which will be redirected towards the full renovation of Mendocino Hotel & Garden Suites and Hill House Inn, two properties in California, US.
This funding also aims to refinance the properties and significantly boost local employment, creating more than 50 jobs.
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The comprehensive plan for both assets will not only refurbish all guest rooms but also relaunch a key food and beverage venue and the largest indoor event space on California’s North Coast.
Castle Peak Holdings, the new owner of these properties, is set to launch a restoration to improve the experiences of the guests.
The renovation will see upgrades across both sites, restoration of a historic lobby bar and a three-meal restaurant at Mendocino Hotel.
Additionally, the North Coast’s largest indoor wedding venue will be reopened, and improvements will be made to room layouts, Americans with Disabilities Act (ADA) compliance, and coastal-facing suites.
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By GlobalDataThe projects will also focus on activating public gathering spaces for both locals and tourists.
The Mendocino Hotel & Garden Suites stands as the sole full-service hotel in the downtown district.
Set to be transformed into a hilltop retreat, Hill House Inn will feature meeting and event spaces, offering ocean views and convenient access to downtown Mendocino.
Thomas Financial Group government guaranteed lending senior vice-president Zach Chandler said: “We delivered a complex, long-term loan structure to support two of Northern California’s most irreplaceable hospitality assets, and did it with the stability of USDA financing.”
The loan has an 80% USDA guarantee and a 30-year term without balloon payments. The properties signify a substantial part of Mendocino’s total hotel room inventory.
