CIM Group, a real estate and infrastructure owner, operator, lender, and developer, announced closing two loans on Florida hotels.
The first is a $34.97m senior loan to a joint venture between Monarch Alternative Capital and HHM Hotels secured by the dual-branded Aloft/Element hotel in Orlando.
Completed in 2021, the dual-branded Marriott hotel combines the contemporary and casual Aloft brand with the extended stay Element brand.
The second loan is a $28.9m whole loan to Newbond Holdings secured by the Aloft in Tampa, a 130-key hotel which opened in 2014.
CIM Group seeks to expand its hospitality lending focus beyond the full-service sector with a greater capital commitment for select and extended stay hotels.
The company has observed that business and leisure travel is on the upswing as the economy has moved beyond COVID restrictions while lending capital for hotels is contracting. These factors have encouraged travellers’ interest in and demand for mid-tier hotel options in US markets.
In 2022 CIM Group and its affiliates reportedly provided more than $3.8bn of commercial real estate loans for property acquisitions, recapitalisations, and new construction projects across the US.
According to hotel industry insiders, tighter lending standards from regional banks are making it harder for US hotel developers to secure funding, slowing the construction of new hotels at a time when Americans’ desire for travel is high.