JLL’s Hotels & Hospitality Group has arranged $167.7 million in refinancing for a 15-property WoodSpring Suites portfolio spanning Michigan, Tennessee, North Carolina and Florida. The portfolio totals 1,829 keys.
JLL worked on behalf of the borrower, a partnership between Whitman Peterson and affiliates of Concord Hospitality Enterprises Company, to secure a floating-rate, five-year loan through CIM Group. The financing includes $117.7 million in initial funding with an additional $50 million available for earn-out opportunities and asset additions.
The portfolio consists of newly constructed extended-stay properties that opened within the past two to five years. The assets are positioned in high-performing markets including Jacksonville, Charlotte, Raleigh-Durham, Detroit, Grand Rapids, Knoxville and Nashville. The properties feature fee-simple ownership, non-union operations and select-service positioning. Each is located near major transportation corridors, employment centers and essential amenities.
The extended-stay model supports approximately 85 percent of occupied rooms generated by guests staying seven or more nights. This profile allows the properties to operate similarly to short-term apartments rather than traditional hotels, resulting in higher profit margins and stable cash flow.
“The successful refinancing reflects the strength of the extended-stay sector, the quality of this particular portfolio and the strength of the sponsors,” said Kevin Davis, CEO of JLL Hotels & Hospitality, Americas. “Concord Hospitality and Whitman Peterson represent best-in-class sponsorship with deep expertise in extended-stay development and operations, including a pipeline of over 50 additional properties. With demand for extended-stay accommodations expected to grow five percent annually while new supply remains limited, these assets are well-positioned for continued strong performance.”