01.14.20

PMZ Realty Capital LLC Reports Record 2019

PMZ Realty Capital LLC, a national boutique real estate investment-banking firm focused on creating cutting-edge capital structures for its clients, reported today a record-breaking amount of deals in 2019. They reported total dollar volume of over $700 million dollars representing financing for 40 hotels.

“We had another year of robust growth, having completed more than $700 million in financing for our clients. The macro-economic factors are in place for 2020 to be an even stronger year as interest rates remain at historic 40-year lows, low unemployment, and a healthy GDP growth number,” said Peter Berk, President, PMZ – Hotel Finance Group. “With construction lenders remaining disciplined in terms of allocation of funds for new projects, and appropriate loan-to-cost ratios preventing overleveraging in the hospitality sector, PMZ remains extremely optimistic about the industry fundamentals in 2020.”

Last year’s deals included almost every hospitality brand and some independents. Some recent transactions included:

  • Embassy Suites Centennial Park, Atlanta, Georgia, completed an $84 million fixed-rate loan.
  • Completed $35 million refinancing loan for Middletown Management on a three-property portfolio including SpringHill Suites by Marriott, Beavercreek, Ohio; Holiday Inn Cincinnati North, West Chester, Ohio; and Holiday Inn Express & Suites Dayton, Ohio
  • TRYP by Wyndham Miami Bay Harbor, Bay Harbor Islands, Florida, completed a $25 million bridge loan for a 3-year term with floating rate based on 30-day LIBOR and sourced via a debt fund.
  • The MC Hotel, Autograph Collection, Montclair, New Jersey, completed a $35 million 3-year bridge loan with a floating rate based on LIBOR funded by a public mortgage REIT.
  • Completed a $40 million portfolio loan for CMC Hotels for three properties in Raleigh, North Carolina, including SpringHill Suites by Marriott Raleigh Cary, Hyatt House Raleigh, and Fairfield Inn & Suites Raleigh. This allowed CMC to retire

“PMZ works with our clients to find the most favorable execution in terms of both proceeds and loan-terms based on our experience with closing hundreds of deals over the past several years and our strong relationships with all the major capital providers who operate in the hospitality industry,” said Michael Sonnabend, Managing Member, PMZ Realty Capital. “Our clients appreciate the creative structures we put together tailored to their specific situation and needs. We anticipate financing to continue to be available in 2020, but with stricter underwriting criteria. The maturity of the hotel market, along with decreased RevPAR, will continue to force lenders to maintain tight underwriting.”

PMZ Realty Capital LLC is highly regarded within the hospitality industry for their integrity, creativity, and advocacy on behalf of their clients. With over 75 years of combined experience, they are the industry experts and as such, are frequent contributors to industry publications and conferences. The firm approaches each assignment with passion, commitment, and dedication to achieving the client’s objectives.

About PMZ Realty Capital LLC

PMZ Realty Capital LLC is a boutique real estate investment banking firm that operates on a nationwide basis. Their advisory services are highly specialized, with the singular goal of creating the most advantageous capital structure for their clients. PMZ Realty Capital is a national leader in hospitality financing, focusing on debt and equity financing, note sales, joint ventures, recapitalizations, and real estate advisory services. For more information about PMZ Realty Capital LLC or to contact the firm to finance your next hotel, contact Peter Berk, President, PMZ – Hotel Finance Group, at (212) 277-8265 or Michael Sonnabend, Managing Member, PMZ Realty Capital at (212) 277-8252.

PMZ has worked with our franchisees for over two decades financing all of the Hilton brands.  They have extensive experience with our brands and in the capital markets and have provided outstanding customer service.  Their business consistently finds creative financing solutions for our licensees, which, in turn, helps the Hilton Franchise Development Team achieve our growth objectives. PMZ brings trust and commitment to our franchisees.  We look forward to continuing our relationship with PMZ and recommending them to our franchisees in the future.

Bill Fortier
Senior Vice President Development, Hilton Worldwide