Tall & Urban News

Closed $52.5m Construction Loan for Houston Hotel

Photo courtesy of Adrian N
Photo courtesy of Adrian N
25 August 2023 | Houston, United States

Arriba Capital recently closed a $52.5 million ground-up construction loan for a dual-brand property in Houston's central business district. The property, which consists of a Holiday Inn Express and Staybridge Suites, is being developed and managed by Neway Hospitality, a Houston-based hotel developer, owner, and operator with a strong track record in the Houston market. The loan, which was sized to 75% loan-to-cost, included a $34.5 million senior loan and $18 million of C-PACE financing. According to Ryan Bosch, a principal at Arriba, the strength of the sponsorship and prime location in downtown Houston made this financing possible, despite a difficult capital markets environment.

 The hotel will feature 275 guest rooms with traditional and extended-stay options, as well as amenities such as an outdoor pool, meeting space, a full-service bar, a fitness center, a business center, and a dining area for complimentary breakfast. It is set to open in the fourth quarter of 2025. Ali Momin, general partner at Neway Hospitality, praised the collaboration with Arriba Capital and Ryan Bosch, who is renowned as an expert in construction capital markets for hotels and was instrumental in achieving the project's capital structure.

Read more at Hotel Business.