(New York, NY) October 29, 2007 – GE Real Estate announced today it provided a $37 million on-book, flexible rate loan to the Shamrock-Hostmark Hotel Fund, LP to facilitate the acquisition and renovation of the 489-key Doubletree Hotel and adjacent freestanding restaurant in Tampa, Florida. Shamrock-Hostmark plans to renovate all guest rooms and common areas.
The full-service hotel is located less than two miles from Tampa International Airport in the heart of the Westshore district. The property offers the area’s largest meeting facilities with more than 16,000 square feet of meeting and banquet space.
Hostmark has managed more than 250 hotels in 40 states, the Caribbean, Canada and the Middle East, and has developed a niche in repositioning, renovating and rebranding hotels. It plans to improve the overall performance of the Tampa Doubletree by implementing a significant renovation and leveraging the Hostmark Hospitality Group’s management expertise to attract higher rated corporate and group business.
This was the sixth transaction between Shamrock-Hostmark and GE Real Estate. To date, the Shamrock-Hostmark Hotel Fund comprises the following assets, in addition to the Tampa Hotel, for a total of 1,626 rooms:
- Embassy Suites in Palm Desert, California
- Wyndham Andover Hotel in Andover, Massachusetts
- Crowne Plaza in San Antonio, Texas
- Springhill Suites in Miami, Florida
- Doubletree Hotel in Princeton, New Jersey
"The previous owner had little experience managing and renovating full-service properties, and Hostmark has a tremendous track record of revitalizing such under-performing assets,” said Susan Lee Furbay, director of GE Real Estate’s North American Lending Hospitality Group. “The completion of the renovation, and the aggressive push to pursue corporate group accounts, will help position the hotel for a significant increase in average daily rate and occupancy.”
Added Furbay, “The total cost basis of this investment is $56.6 million or $116,000 per key, which is well below replacement costs. This is a good investment for the fund, and with Shamrock-Hostmark’s expertise in renovating and managing full-service hotels, this investment will result in an exceptional rate of return. We appreciate this opportunity to again collaborate with Shamrock-Hostmark on an appealing investment.”
"GE Real Estate has an exceptionally strong balance sheet, and we know we can count on them for competitively priced deals and certainty of execution even in a turbulent environment,” said George Buchler, managing director of the Shamrock-Hostmark Hotel Fund. “We look forward to building on our solid relationship as we pursue other value-add opportunities.”
GE Real Estate’s North America Lending division offers financing for retail, industrial, self-storage, multifamily, office, student housing, regional malls and outlet centers. North America Lending is also a provider of financing solutions for niche asset classes including affordable housing, golf, hospitality, vacation ownership, manufactured home communities and RV resorts.
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About GE Real Estate
GE Real Estate (
www.gerealestate.com) is one of the world's premier commercial real estate companies with more than US$72 billion in assets and a presence in 31 countries throughout North America, Europe, Asia, and Australia/New Zealand. Backed by GE's AAA rating, GE Real Estate offers a comprehensive range of capital and investment solutions including equity capital for acquisition or development, as well as fixed and floating rate mortgages for new acquisitions or re-capitalizations of commercial real estate. With a 28% compound annual growth rate since 1993, GE Real Estate is one of the world's fastest growing and most profitable real estate enterprises. This extraordinary record of success grows out of a reputation for collaboration and partnership; a depth of knowledge and experience and a history of building relationships, finding opportunities and opening doors for more than 5,000 owners, builders, borrowers and brokers worldwide.
GE Commercial Finance (
www.gecommercialfinance.com) offers businesses around the globe an extensive array of financial products and services. With more than US$276 billion in assets and expertise in the middle-market, GE Commercial Finance provides loans, operating leases, financing programs and innovative structured capital to help customers grow. Headquartered in Norwalk, Connecticut, GE Commercial Finance is a wholly owned subsidiary of the General Electric Company (NYSE:GE), a diversified services, technology and manufacturing company with operations worldwide.
