Langham Boston
Summary
Regency Capital Partners (RCP) arranged the re-finance of this 318-key Langham Hotel, located in Boston's Financial District. Previously under a "Le Meridien" flag, the Property was re-flagged in 2002 as the first Langham Hotel in the US. Currently undergoing a $6 million lobby renovation, the hotel is slated for a significant guestroom overhaul in the next 24 months. Despite the owner's major capital investments, the Property's operations have been sluggish due to market factors, resulting in a debt yield of just 6% -- far below lender requirements. Lack of brand recognition in the US also made it difficult for many lenders to underwrite a new loan. Nonetheless, RCP convinced several lenders that the Borrower's strength and experience, along with improving market conditions, would bring operations back to normal levels. Ultimately, RCP obtained a 3-year, floating rate bridge loan for the Borrower with an interest rate of less than 2.5% to take out the existing debt in its entirety.
Transaction Details
| LOAN AMOUNT | $45,000,000 |
| FINANCING TYPE | Bridge |
| LENDER TYPE | Domestic Bank |
| PROPERTY TYPE | Hospitality |
PROPERTY ADDRESS |
250 Franklin Street Boston, MA |
| PROPERTY DESCRIPTION | This property is a 318-room, full service luxury hotel, located in downtown Boston. |