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News for the Hospitality Executive

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Irvine based Johnson Capital and Pacific Southwest Realty Services Close the
Holiday Inn Express Hotel & Suites Refinance for the LOK Group
of Companies in Sebastopol, California
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February 6, 2008 - Hospitality industry veteran Dr. Donald W. Wise is pleased to announce that the Global Hospitality Industry practice of Johnson Capital, partnered with Steve Bridges, Principal, Pacific Southwest Realty Services, and Dennis A. Mac Donneil, Principal, of the Lok Group of Companies, to successfully close the refinance of the Holiday Inn Express Hotel & Suites in Sebastopol, in the Sonoma Wine Country.

“This was a challenging refinance for several unusual reasons,” said Wise. “The borrower was approved by Marriott International to convert the hotel to a Fairfield Inn & Suites by Marriott. Among the key issues was getting a release of $1,250,000 in proceeds to execute the renovation and Product Improvement Plan and Brand mandated standards for the conversion – therein was the riddle.”

Johnson Capital is committed to offering the hospitality industry proprietary loan programs for Brand based-lending for Hilton, IHG, Marriott, Wyndham, and Choice.  Individual loans under these programs will range from $4 to $20 million.  

Most hotels of the Hilton Garden Inn, Hampton Inn and Suites, Holiday Inn Express, Marriott Springhill Suites, and Fairfield Inn and Suites venues, by example, need a complete Property Improvement Plan (“PIP”) renovation at least every ten years. This can range from $8,000 to $15,000 per guestroom.
 
As a rule, lenders are very reluctant to allow borrowers to pull substantial funds back out of a refinance – even for Brand mandated standard PIP improvements - and herein is the basis of the Johnson Capital proprietary lending programs being currently orchestrated by the Global Hospitality Industry practice of the firm. 

Johnson Capital was recently featured on International Bloomberg television: http://www.bloomberg.com/avp/avp.htm?clipSRC=mms://media2.bloomberg.com/cache/vH4HCPuwIpeA.asf

The Johnson Capital Global Hospitality Industry investment banking practice provides high touch investment advisory, investment banking, transactional (brokerage) services, and financing placement of both debt and equity in the $10,000,000 to $300,000,000 range. The Johnson Capital Express hospitality loan program lends between $1 million and $5 million, but on a case-by-case basis, will lend up to $10 million. These combined services are primarily focused on the Hilton Garden Inn, Hyatt Place, Cambia Suites, Marriott Fairfield Inn, Staybridge Suites, Towne Place Suites, Marriott Springhill Suites, and Holiday Inn Express for both construction and acquisition/refinance debt placement. In full-service hospitality properties, this includes the upscale, luxury and boutique market tiers for domestic and International hotels, both branded and unbranded, as to resorts, gaming, condominium-hotels, timeshare, fractional and mixed-use projects, with and without golf, that have a lodging component.

Capital market programs include:

  • Debt placement – First mortgage, construction, subordinated/mezzanine debt, preferred equity financing for acquisition and refinance of single-asset and portfolio transactions, and debtor in possession;
  • Equity placement – New construction, renovation, recapitalization;
  • Corporate real estate services – Disposition of single hospitality assets and portfolios and/or loan sales;
  • Bridge loans – Purchasing and participating in the placement of bridge loans of existing assets, and raw entitled land, on a case-by-case basis;
  • Advisory services – Preparation of sophisticated financial and/or market analysis of properties, including valuations, hold versus sell analysis, feasibility studies, investment underwriting, transactional due diligence, and partnership restructuring and dissolutions; 
  • Investment services – Asset management and development and acquisition services to hotel real estate investors requiring third-party expertise; 
  • Distressed and REO hotels – representing numerous private equity funds seeking to acquire distressed and “broken” hotels;
  • Distressed commercial paper – representing numerous hedge funds seeking to acquire distressed and “broken”  hotel debt; and
  • Brokerage intermediary services – existing assets, sites, and portfolios.
About Johnson Capital
Johnson Capital is one of the largest and most prominent real estate investment banking and commercial mortgage brokerage firms in the United States. Since its inception in 1987, aggregate transaction volume has soared to over $25 billion. The firm now has 21 offices nationwide: Irvine (corporate headquarters), Newport Beach, Los Angeles, Encino, San Diego, San Jose, San Francisco, Napa Valley, Phoenix, Denver, Vail, Salt Lake City, Dallas, Kansas City, Little Rock, Boca Raton, Washington, D.C., New York City, Norwalk, CT. The firm has International offices in: Madrid, Cabo San Lucas, Puerto Vallarta, and Bangalore, India, servicing India, Dubai, and the United Arab Emirates.

Contact
Interested parties, please contact: Dr. Donald W. Wise, Global Hospitality Industry, Managing Partner, Johnson Capital, Hospitality and Leisure Real Estate Investment Banking, 1436 Second Street, #310, Napa, California 94559; 707.252.6975: Office;  707.252.9067: Facsimile; 949.283.9706: Mobile; 949.887.7787: International Mobile; DrDon@johnsoncapital.com: Electronic Mail; http://www.johnsoncapital.com/: Web site

 
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Contact:

Dr. Donald W. Wise
Global Hospitality Industry, Managing Partner
Johnson Capital
Hospitality and Leisure Real Estate Investment Banking
1436 Second Street, #310
Napa, California 94559
707.252.6975:  Office
707.252.9067: Facsimile
949.283.9706: Mobile (Domestic)
949.887.7787: Mobile (Domestic and International)
DrDon@johnsoncapital.com: Electronic Mail
http://www.johnsoncapital.com/:  Web pages

 

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Also See: Johnson Capital 100% on track in 2008 Supporting all of the Major Hospitality Conferences Including: Platinum Sponsor at ALIS, Developing & Financing Hotel Waterpark Resort Workshop, JMBM Hotel Development, RealShare Debt and Equity, JMBM Meet the Money, Platinum Sponsor at NYU, Midwest Lodging Investors Summit, Phoenix, and Rome / February 2008
Johnson Capital 100% on track supporting all of the major Hospitality Conferences including Phoenix, Rome, ALIS, JMBM, RealShare and NYU; The firm is sponsoring and speaking at all of the major hospitality events for the balance of 2007 and 2008 / September 2007
Johnson Capital Welcomes Bryan K. Williams, CQA, Chief Service Officer and Baldrige Examiner, of B. Williams Enterprise, LLC, to their Global Hospitality Industry Advisory Board / September 2007
Johnson Capital Welcomes David M. Brudney, ISHC. Principal, David Brudney &  Associates, of Carlsbad, CA to their Global Hospitality Industry Advisory Board / September 2007
Johnson Capital Welcomes Melinda Bush, CHA, President and Chief Executive Officer of HRW Holdings, LLC, to their Global Hospitality Industry Advisory Board / July 2007
Johnson Capital Creates Strategic Alliance with Hospitium; Firm to Provide Hospitality Research and Consulting for High-End Resorts and Mixed-Use Hospitality Projects / July 2007
Johnson Capital Creates Global Hospitality Group for International Hotel and Resort Investment Banking; Dr. Donald W. Wise Named Managing Partner / April 2007
Resorts, Marinas and Vineyards, Inc. Represents Craig and Kathryn Hall in the Acquisition of La Residence, a Twenty-five Room Resort in Napa Valley, California / January 2007

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