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Hotel Refi is Back

Hotel Refi is Back
Jones Lang LaSalle  and Tishman Hotel & Realty secured $158.5M in senior debt for the Sheraton Chicago Hotel & Tower last week.Goldman Sachs Real Estate Mezzanine Partners financed the building, proving that there are large lenders looking for assets in the hotel market.
Sheraton Chicago Hotel & Tower
Jones Lang LaSalle's Mathew Comfort said multiple lenders bid on the financing, including several single lenders willing to take down the full loan amount. The 1,209-room hotel has a history of substantial cash flow, making it an attractive asset for Goldman Sachs  and other lenders. In 2009, almost no lenders would have even looked at a deal of over $50M, Mathew says.
Hotel Refi is Back
In case  Coach Smith reads Bisnow, we added our two sense to the whiteboard. Mathew, who arranged the financing with colleague Jeffrey Davis, said that the refi is a sign that lenders think the hotel markets have hit  rock bottom  and will be staying the same or improving in the foreseeable future. The loan is also one of the largest for a single asset hotel  in the last two years, indicating that there is cash available for bigger loans, especially on trophy assets. The hotel, just north of the Chicago River on  Columbus Drive, has 20k SF of meeting space and six ground-floor retail spaces.