DAYTON, OHIO-BASED Middletown Management has refinanced three of its properties for $35 million through PMZ Realty Capital LLC. Har Bhatnager is president and CEO of Middletown Management.
The three properties refinanced are the 118-room Springhill Suites by Marriott in Beavercreek, Ohio, the 130-room Holiday Inn North Cincinnati in West Chester, Ohio, and a 111-room Holiday Inn Express & Suites in Dayton, Ohio.
“The proceeds will allow for a complete Holiday Inn Express renovation and financing for new construction projects” commented Peter Berk, president of PMZ Realty Capital.
Middletown entered a 10-year, non-recourse CMBS loan with 30-year amortization for the Springhill Suites. “PMZ presented us with several options and ultimately, we selected a lender that provided for the future stability of these hotels” Bhatnager said.
The company refinanced the Holiday Inn in West Chester with a 10-year, non-recourse CMBS loan with 30-year amortization. The Dayton Holiday Inn Express, opened in 2011, is the property to be renovated.
“PMZ was able to secure a fixed rate loan at an extremely attractive interest rate for Middletown Management,” said Bhatnager.
The Springhill Suites is located in the Fairfield Commons Shopping complex near Wright-Patterson Air Force base, Wright State University and the University of Dayton. Also nearby are Wright-Patterson Air Force Base, the U.S. Department of Defense, Lockheed Martin, General Dynamics and Bae Systems.
Holiday Inn Cincinnati North includes a Johnny’s Italian Steakhouse and more than 20,000 sq. feet of flexible space as well as an on-site wedding chapel. Companies nearby include Honeywell, Champion Windows, General Electric, Proctor & Gamble and Manheim.
“Middletown Management has chosen to work with PMZ since 2005,” Berk said. “Watching a client grow from three hotels to seven current properties with several more in the pipeline makes us happy for our client’s long term success.”
The Middletown Management transaction comes at a time when STR’s sixth annual Hotel Lender Survey found that more lenders believe hotel values will drop this year as valuations reach or come close to peaking, meaning they will be more cautious in approving new loans. Read more about the financing outlook for this year in the article “Caution on paper” in the March issue of Asian Hospitality.