Shhg refi analysis(3)

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Shhg refi analysis(3)

  1. 1. Hotels Refinance Analysis Prepared For: 431 Howe Avenue 2nd Floor Shelton, CT. 06484
  2. 2. SSHG HOTEL REFINANCE ANALYSIS 107 Rooms Built in 2008•Current Loan Amount: $8,500,0000•Requested Loan Amount: Maximum Proceeds / Leverage•Operating Revenue: $3,717,252•NOI: $1,849,764 (per Q1, 2011 actual op. numbers & full 2011 budget)•Interest Rate: Best available - No Interest only requested•Non-Recourse•30 year amortization•10 year fixed term•We are looking for maximum proceeds on this propertyPackage includes actual performance numbers from April 2011.Located south-west, 8 minutes by car distance from the city center. ___________ has all the comforts such as :Restaurant, Room Service, Tennis Court, Business Center, Free Parking. This hotel offers a unique service : near golfcourse. This hotel offers high speed internet. The Hotel Indigo is a sophisticated, Full-service hotel near the AlbanyInternational Airport (ALB), providing a complimentary shuttle to the airport. Our boutique hotel in Albany, NY is idealfor travelers who desire an oasis to escape from the ordinary, but value the traditional hospitality of a standard hotel. 431 Howe Avenue 2nd Floor Shelton, CT. 06484
  3. 3. Website:http://www.hotelindigo.com/h/d/in/1/en/hotel/albil?&sitrackingid=208207304&sicreative=3452486043&dp=true&sicontent=0&siclientid=1933&cm_guid=1-_-100000000000181025742-_-3452486043&cm_mmc=Google-PS-HotelIndigo-_-G+B-AmericasEast-_-NY-Albany-Latham-_-hotel+indigo+latham&gclid=CN72v7WavakCFUTf4Aod8RFKhA&externalHotelDetailHit=trueLocation Map: 431 Howe Avenue 2nd Floor Shelton, CT. 06484
  4. 4. 100 Rooms Built in 2007•Current Loan Amount: $ 8,500,0000•Requested Loan Amount: Maximum Proceeds / Leverage•Operating Revenue: $ 1,852,239.27•NOI: $416,832.75•Interest Rate: Best available - No Interest only requested•Non-Recourse•30 year amortization•10 year fixed term•We are looking for maximum proceeds on thisLocated approximately one mile from the _______ Airport, our eastern _______ hotel provides a friendly andcomfortable environment for our guests. Our hotel located in _________ is also minutes from Lehigh University. Visitorsare sure to enjoy their vacation while lodging in our ________ which is in close proximity to many prominent Bethlehemattractions. Dorney Park and Wild Water Kingdom, Lost River Caverns, the Promenade Shops, the Crayola Factory, andthe exciting new Las Vegas Sands Bethlehem Casino are just a few of the many attractions that are within easy drivingdistance of our hotel. 431 Howe Avenue 2nd Floor Shelton, CT. 06484
  5. 5. Website: http://www.hiexpress.com/hotels/us/en/thlehem/blmrt/hotelLocation Map: 431 Howe Avenue 2nd Floor Shelton, CT. 06484
  6. 6. 104 Rooms Built in 2006•Current Loan Amount: $ 6,500,0000•Requested Loan Amount: Maximum Proceeds / Leverage•Operating Revenue: $ 2,431,280.85•NOI: $ 929,586.64•Interest Rate: Best available - No Interest only requested•Non-Recourse•30 year amortization•10 year fixed term•We are looking for maximum proceeds on thisKnown as the gateway to the Finger Lakes region, the town of _______is located in upstate New York, just outside of_____ Conveniently situated off the NY State Thruway, the _____________ offers friendly service and outstandingamenities for any business or leisure trip. Website: 431 Howe Avenue 2nd Floor Shelton, CT. 06484
  7. 7. Location Map: 90 Rooms Built in 2008•Current Loan Amount: $ 9,000,0000•Requested Loan Amount: Maximum Proceeds / Leverage•Operating Revenue: $ 2,279,790.90•NOI: $ 711,415.01•Interest Rate: Best available - No Interest only requested 431 Howe Avenue 2nd Floor Shelton, CT. 06484
  8. 8. •Non-Recourse•30 year amortization•10 year fixed term•We are looking for maximum proceeds on thisOur hotel, just outside of _________, offers all-suite accommodations and hotel specials perfect for both short-term andextended stay guests in the greater Rochester area. Our _______, nestled in the famed Finger Lakes Region of WesternNew York, puts guests staying here minutes from lush vineyards and wineries, Lake Ontario, Canandaigua, and historicDowntown Rochester. Website:Location Map: 431 Howe Avenue 2nd Floor Shelton, CT. 06484
  9. 9. Portfolio Totals:•Current Loan Amount: $32,500,000•Operating Revenues: $10,280,563.02•Portfolio NOI: $3,907,598.30Proposed Loan:•Loan Amount: $33,000,000•Term: 10 years fixed•Interest Rate: 285 basis point over the 10 year Swap (6.17%)•Amortization: 30 years•Annual Payment during Interest Only: $2,159,500•Monthly Payment: $179,958•Due Date: 1/2017 (estimated based upon closing date of 1/2007)Hypothetical Savings Analysis based upon current swap contract and new Loan (based upon $35,000,000 loanamount) 431 Howe Avenue 2nd Floor Shelton, CT. 06484
  10. 10. Sources and Uses10 Year Treasury Analysis:The 10 year fixed rate loan takes out all interest rate risk to Hanford for the next 10 years.Below is a chart of the 10 year treasury yield: 431 Howe Avenue 2nd Floor Shelton, CT. 06484
  11. 11. The 10 year yield is currently below 5% for only the third time in the last 40 years. As witnessed by the abovechart in 40 years the 10 year yield has traded below 5% for a total of 4 years before 2003.The key point of this chart is that starting in 2003 the 10 year yield has been moving higher reversing a downtrend thatstarted in 1983.This reversal of a 20 year downtrend is a very bearish trend for interest rates over the long term. This has lead to themassive amount of 10 year fixed rate refinance transactions occurring in the last three years. The trend has been thatconservative owners have been locking in 10 year money to avoid a run up in rates over the next 5-10 years.If the overall sentiment at Hanford Hotels is that rates will trend higher over time then the Countrywide refinance is thecorrect decision. If the view is that rates will remain flat or go lower then a variable rate loan may allow for savings inthe future. 431 Howe Avenue 2nd Floor Shelton, CT. 06484
  12. 12. 431 Howe Avenue 2nd FloorShelton, CT. 06484

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