Shaner Hotel Group, which is an owner and manager of hotel properties, has created Shaner Hospitality Finance LLC, a real estate investment trust which will provide equity and debt for refincings and purchases of existing loans as well as preferred equity investments.
It will not provide financing for hotel development.
“This is our third hotel financing vehicle. Each has been tailored to fill a gap to meet the hotel industry’s specific financing needs at the time,” said Lance Shaner, chairman and CEO of Shaner Hotel Group.
There is a credit crunch for
With adequate funding, many quality properties can not only survive but thrive. “However they need to restructure their capital stack which is often a complex process that requires in-depth understanding of the hotel industry not found at most conventional financing firms,” Shaner said. He added the company has the capacity to expand this platform as market conditions warrant.
Plato Ghinos, president, said the goal is to place Shaner Hospitality Finance’s initial $100 million capitalization within 12 months. Besides Shaner Hotel Group, capital for the new venture is coming from Almanac Realty Securities VI LP.
Its client base is the small to mid-sized hotel company; the properties must be well-located and carry a premium, full-service or select-service flag.
Financing is available between $3 million and $50 million and can be on individual properties or portfolios. While there are no geographic restrictions, Shaner Hospitality Finance will look to concentrate on the east coast.
