HOTEL HAT TRICK

A magnificent refi for the Magnficent Mile—Strategic Hotels  closed on a  $145M loan at the Intercontinental, replacing the $121M debt on the hotel as part of its strategic balance sheet restructuring. (Sounds like something from Harry Potter: reach deep into the hat and pull out some new financing.)

 
A good magician never tells her secret, but CFO Diane Morefield  did give some insight: the restructuring helps Strategic by staggering the years that the portfolio's debts mature (that means no more than 22% of the loans mature in any given year) as well as ensure liquidity. JPMorgan Chase Bank  originated the 10-year financing at a 5.61% interest rate, while Eastdil Secured  was the placement agent.

Good news for the Windy City: we're on  hoteliers' radars. Bisnowheld its New York Hotel Investment Summit  on Wednesday, and although the Big Apple is still hospitality's darling, Chicago's not too far behind. Panelists (from top companies like FelCor) named the city as one of its investment targets, confirming a report that Cushman & Wakefield released earlier this week. For the past two years, nine metro regions, including Chicago, have accounted for 60%  of all hotel trades valued over $10M. Joining the two cities are San Diego, San Francisco, Los Angeles, Washington DC, Boston, South Florida, and Dallas.

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