ANNAPOLIS, MARYLAND Thayer Lodging Group has completed the refinancing of its 50% stake in Interstate Hotels & Resorts.
Thayer and 50-50 joint venture partner Shanghai Jin Jiang International Hotels last month closed on a US$128 million senior secured credit facility provided by Industrial and Commercial Bank of China. Proceeds from the refinancing were used to retire an existing syndicated credit facility, as well as a first mortgage debt secured by one of Interstate’s wholly-owned hotels.
“The recapitalization of our management joint venture at more favorable rates will result in significant interest savings and further increases our financial flexibility and investment returns,” says George Dabney, managing director of treasury for Thayer.
Thayer has already had an active 2011, having acquire two upscale hotels—the 337-key JW Marriott San Francisco Union Square and the 304-key Hotel Palomar Atlanta Midtown, which it has since reflagged as Renaissance Atlanta Midtown.
“We expect 2011 to be one of our most active years in some time,” says Bruce Wiles, Thayer’s chief operating officer. “We are taking full advantage of our ability to reconfigure and reposition hotels to increase investor returns.”