VISION HOSPITALITY GROUP has refinanced its 115-room Marriott Courtyard Duluth Sugarloaf in Duluth, Georgia, for $12.5 million. The Chattanooga, Tennessee-based company also recently received the Development Partner of the Year award at the Marriott MINA & Full Service Owners Conference in October.
Vision Hospitality opened the Courtyard Duluth Sugarloaf in 2016. It is next to the 13,000-seat Infinite Energy Convention Center and Arena in Gwinnett County. The area is the most populous county in the state of Georgia.
“One of the foundations for Vision Hospitality Group’s success is our focus on optimizing the capitalization of our portfolio,” said Vision Hospitality President and CEO Mitch Patel. “To secure financing at rates as attractive as these grants us a tremendous sense of confidence as we continue to grow our portfolio, knowing that we have very supportable, long-term debt on assets that are in growing markets. It allows us to maintain our focus on growth, guest satisfaction and adherence to our core values.”
Interest rates are now low enough to make refinancing an attractive option for hotel owners, said Peter Berk, president of PMZ Realty Capital, the firm that arranged the refinancing for Vision.
“PMZ Realty sees historically low interest rates in the 3.5 to 4 percent range now and we strongly advise you to refinance and do it now,” he said. “Vision Hospitality Group is a strong hotel operating company and they were able to lock in a 3.55 percent CMBS fixed loan for 10 years.”
Regarding Vision Hospitality being named Marriott’s developer of the year, the Marriott Development Team and Full Service Franchising Team considered several factors, such as the value of new developments and success in fulfilling mutual business priorities.
“In 2015, Vision was named U.S. Developer of the Year by Marriott for select-service brands, and it gives us great honor to now receive Development Partner of the Year for Marriott’s full-service collection,” Patel said.
In October, Vision Hospitality broke ground on The Aloft by Marriott Chattanooga/Hamilton Place. The 135-room Aloft will be the first of its brand in Chattanooga.