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 refinanced a substantial portion of our portfolio: 18 loans for both limited and select service hotels across four states, in excess of $200 million total in-debt financing. I always value PMZ’s insight into the current state of the financing market. They are always responsive, enthusiastic and have in depth knowledge of the financing markets. I am confident that PMZ would add value as financial consultants/brokers from their experience in the hospitality industry.

Hasmukh (H.P.) Rama
Auro Hotels (Formerly JHM Hotels), Chairman of the Board

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 

We have worked with the PMZ team for many years.  They have done exceptional work for us in securing great financing for our assets in multiple locations.  They are professional and knowledgeable in all aspects of real estate finance.  

Mitch Patel
President & CEO, Vision Hospitality Group

I’ve had the opportunity to complete a dozen debt and equity transactions with Mike and Peter over the past ten years and value their financial and business insight. They bring innovative ideas and fresh thinking to each of their deals, and helped structure both debt and joint venture transactions that exceeded our expectations. Above all, we respect them and their firm as trustworthy advisors who are focused on their clients and their needs.

Ashish Parikh
Chief Financial Officer, Hersha Hospitality Trust

PMZ and their team of experts has been arranging financing for IHG owners for over 20 years. Their deep understanding of the hospitality industry, and the capital markets, has allowed many of our owners to secure the necessary financing to grow and expand their portfolios. PMZ has always and continues to put relationships first by acting with transparency and professionalism throughout their entire process. We appreciate what they do for IHG and the hotel industry as a whole.

Julienne Smith
Chief Development Officer, The Americas IHG Hotels & Resorts

I have worked with PMZ for over 10 years and during that time have had nothing but positive experiences.  They deliver at closing exactly what they promised at the beginning of the project.  PMZ has helped Sun Companies secure over $150 million in financing for such brands as Hilton, Marriott, and IHG.  Their business is relationship-based, therefore, they are the perfect partners for us and essential to our company’s growth.

Bharat Patel
Chairman & CEO, Sun Development Company

I’ve completed a myriad of transactions over the past 10 years with Mike and Peter and their clients. Through the ups and downs of the real estate market cycle, they have consistently presented us with transactions that are attractive based on current market dynamics. Throughout the process from origination to closing they have been a strong advocate for their clients, and on more than one occasion, thought of an innovative solution to structure around significant issues. Their creative thinking has benefited their clients and made me confident that once we begin a transaction, it will lead to a successful closing.

Michael Amoia
Director, NY based insurance company

I initially called Peter and Mike several years ago when I was seeking refinancing of two of our properties in Pennsylvania. The lender we were working with at the time had changed the terms on us several times. I explained the situation to them, and they assured me that they would close at the same exact terms or better than originally quoted. Not only did they close at better terms then originally outlined, but they exhibited a sense of professionalism and integrity that every intermediary should possess. I have since worked with Peter and Mike on several other transactions, and their high level of service is consistent. I would recommend the PMZ without hesitation to anyone seeking financing.

Atul Patel
CEO, HMB Management, Allentown, PA

Our firm currently operates over 75 hotels and restaurants in the upper midwest. When we wanted to arrange financing for eight of our limited and full service hotels in Iowa and Kansas, we started working with Peter after he was highly recommended by several of my peers. He did not disappoint us. He understood our unique local markets and secured $60 million from a national insurance company. We have since engaged his firm several other times to arrange financing for us. There is no doubt in my mind that the professionalism and knowledge of PMZ will benefit anyone looking to finance or refinance hotels.

Bruce Kinseth
Executive Vice President, Kinseth Hospitality Companies

The loan arranged by PMZ allowed us to retire our existing financing and provided a stabilization period for the Embassy Suites now that the renovation is complete. By providing us with multiple financing options, PMZ helped us find the best lender suited to our specific needs.

David Marvin
Founder and President, Legacy Property Group

PMZ has brought us multiple financing quotes and helped us select the one most advantageous to the ownership group. They have consistently helped us navigate the closing process flawlessly.

Danny Patel
CEO Peachstate Hospitality, Former Chairman Asian American Hotel Owners Association (AAHOA)