Spirides Arranges $7.5 million hotel construction loan for new Hilton in Florence, SC
TAMPA, FL—Spirides Hospitality Finance Company has successfully arranged and its client has closed on a $7.5 million senior loan facility from a southeast U.S. headquartered bank to finance the development of a new Hilton Tru Hotel in Florence, SC. The terms of the financing are as follows: The first 18 months during construction will have mortgage payments which are interest only, priced at the prime interest rate plus .50% (currently 4.50%) per annum, adjusted quarterly. Upon completion of construction, the loan payments will convert to a 25 year fully amortizing principal and interest monthly loan payment schedule. The interest rate of the permanent loan will be fixed for five years, then adjusting every 5 years. The interest rate will be priced using the 5 year SWAP rate plus 3.55% (currently 5.55%) per annum. The loan amount was sized using a 75% Loan to Cost ratio, and there is no prepayment penalty after the first five years of the loan.
Tru by Hilton is a new affordable brand that is intended to particularly appeal to younger travelers called millennials who are in their twenties and thirties. Tru properties have a modern design, public spaces in which to work and socialize, and advanced technology. Tru is Hilton's 13th brand and operates in the midscale hotel segment.
"It's no secret that hotel construction lending is not as prolific as it was a couple years ago, even though the demand has certainly not diminished. The sponsor of this project is a respected multi-unit and multi-brand owner and operator of successful hotels throughout the Carolinas. We know the lenders who are looking for new clients who fit this type of borrower profile to develop across the country new and very popular branded hotel concepts such as Tru by Hilton," said Harry Spirides, President of Spirides Hospitality Finance Company who led the debt placement team representing the borrower in this transaction.
Members of the Spirides family have owned, operated, developed, and advised hotels and restaurants for over 90 years, since the 1920s. In fact, in 1970 this company's founder and president Harry G. Spirides' late father George H. Spirides assisted his good friend Cecil B. Day to design, open, and manage the world's very first Day's Inn near Savannah, GA, and he subsequently became the first manager of the world's first Day's Inn early in his career as a distinguished owner and operator of hotels.
Harry G. Spirides is a former owner and operator of a 205-room, full-service, beach resort hotel for over 20 years. He is a third-generation hotelier who has over 30 years of experience working in full-service hotels. He rose up through the ranks of his family's hotel company working in every position from restaurant dishwasher to front desk clerk to general manager to chief executive officer. Today, Harry Spirides, through his company Spirides Hospitality Finance Company, finds it very rewarding to assist hotel owners with their financing needs, having "walked a thousand miles in their shoes."
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