PMZ Realty Capital LLC Secures $25 Million Cash out Loans for Trio of Hilton Hotels


PMZ Realty Capital LLC, a boutique real estate investment banking firm, has secured three hotel loans totaling $25 million. PMZ Realty Capital specializes in hotel real estate investment banking nationwide, with an expertise in sourcing capital.

The three Hilton brands refinanced are the 112-room Hilton Garden Inn in Flowood, Mississippi, the 70-room Hampton Inn in West Point, Mississippi and a 90-room Tru by Hilton in McDonough, Georgia

Deal highlights include:

Hilton Garden Inn – Flowood, Mississippi

PMZ Realty Capital obtained a 10-year, non-recourse CMBS loan with 30 year amortization for this 112-room property.  “The owner focused on a successful transaction that allowed cash back in the deal to complete the investment goals,” stated Michael H. Sonnabend, Managing Member, PMZ Realty Capital. “Our extensive network of lenders allowed us to source the right deal and the property is the only full service hotel in the market with easy access to the airport.”

This 112-room Hilton Garden Inn features airport shuttle service, an outdoor saltwater pool and a full service restaurant.  The property is located in the Dogwood Festival Plaza near a myriad of dining options.  Local attractions close to the hotel include Winner Circle Park, the Mississippi Coliseum and Refuge Golf Course.

Hampton Inn – West Point, Mississippi

Working with lenders, PMZ Realty Capital assisted the hotel owners to secure a 10-year, non-recourse CMBS loan with 30-year amortization. “Solid Hilton brands are successful even in tertiary markets“ commented Michael H. Sonnabend, Managing Member, PMZ Realty Capital. “Satisfied owners appreciate when PMZ Realty Capital leverages its relationships with lenders to execute a deal and provide cash out opportunity on invested equity.”

Tru by Hilton – McDonough, Georgia

“This deal represents both the power of the Tru by Hilton and our ability to forge new ground in the CMBS sector,” said Michael H. Sonnabend, Managing Member, PMZ Realty Capital.  “The CMBS loan met RevPAR Development LLC’s strategic goals and we able to work closely with lenders to create a new way to complete a transaction in the hotel real estate sector.”

This CMBS loan was a 10 year, non-recourse loan with 30-year amortization. Opened in 2017, the 90-room, four story hotel had limited operating history, creating the unique challenge of convincing underwriters to undertake the cash out refinancing. Working with underwriters partners, PMZ Realty Capital offered guidance on the hotel’s emerging category, brand strength, operating capabilities and track record of RevPAR Development LLC.

“This cash out financing is a boost for RevPAR Development”, said Pete Patel, President & CEO,RevPAR Development LLC. “This is our second transaction using PMZ Realty Capital during the previous twelve months.  We appreciate PMZ’s steady guidance, detailed process and proactive advocacy to complete the refinancing quickly. Completing this transaction allows RevPAR Development LLC to grow by increasing our financial flexibility.”

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 LLC 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 Realty Capital LLC at (212) 277-8265.

About RevPAR Development LLC

Since its inception in 1998, RevPAR Development LLC has grown to be one of the top privately owned hotel development/management companies on the East Coast. RevPAR Development LLC takes pride in providing superior service to our guests by nurturing and developing potential in our extraordinary team members. It is our mission to provide each guest service to the highest of standards and an overall exceptional experience.

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)