Acquisitions & Hotel Openings

Thorofare Capital Funds $11.25M Loan for Acquisition of Historic Hotel in Los Angeles' Westwood Village

LOS ANGELES, CA. April 27, 2017 - Thorofare Capital has provided West Hollywood, CA-based Shamina Investments with a $11.25 million floating-rate whole loan for its acquisition and renovation of the 53-room Claremont Hotel Westwood in Los Angeles’ upscale Westwood neighborhood.

The Claremont is located at 1044 Tiverton Avenue in Westwood Village, an historic commercial, entertainment and shopping district adjacent to UCLA in West Los Angeles. The seller, a local family, has owned the property since they built it in 1939. It was the first and currently remains the oldest hotel in Westwood.

A portion of the loan proceeds will go towards an extensive renovation that will include upgrades to all guest rooms, common areas, lobby and exterior. When renovations are completed, Shamina Investments will re-open the hotel in February 2018 as the Palihotel Westwood under the Paligroup hotel flag. Paligroup currently manages and operates four daily and extended stay boutique properties in the Los Angeles area.

The five-year, non-recourse loan was priced at a competitive spread over the 30-day LIBOR and includes structure for reserves to cover renovation costs, debt service and operating deficits prior to stabilization, according to Thorofare Capital Principal Felix Gutnikov who originated the financing.

Paligroup is a fully integrated branded real estate development and hospitality operating company that acquires, programs, develops, owns, and operates unique hotels and residences. Its proprietary brands, development and operational expertise also includes specialized retail spaces, highly curated restaurants, bars and event venues.

The loan was arranged by the New York City office of Mission Capital Advisors LLC.

About Thorofare Capital

Thorofare Capital, Inc. (www.thorofarecapital.com) focuses on originating senior mortgage debt solutions to borrowers seeking to opportunistically purchase or recapitalize middle market commercial real estate assets throughout the United States. Through Thorofare’s two types of lending programs – Fixed Rate Bridge Loans and Floating Rate Whole Loans – it directly originates secured first mortgage positions from $3,000,000 to $40,000,000 on commercial cash-flowing assets across the country. Thorofare, LLC is an SEC-registered alternative investment manager that specializes in managing the Fixed Rate Bridge Loans with its private fund vehicles. Thorofare has originated more than $1 billion of assets in its series of private fund vehicles and institutional accounts. Thorofare’s investors include family offices, foundations, wealth managers, institutional accounts and high net worth individuals.

Contact:
Bruce Beck
bruce@dbrpr.com
(805) 777-7971

Coming Up In The June Online Hotel Business Review




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Feature Focus
Sales & Marketing: Who Owns the Guest?
Hotels and OTAs are, by necessity, joined at the hip and locked in a symbiotic relationship that is uneasy at best. Hotels require the marketing presence that OTAs offer and of course, OTAs guest’s email when it sends guest information to a hotel, effectively allowing OTAs to maintain “ownership” of the guest. Without ready access to guest need hotel product to offer their online customers. But recently, several OTAs have decided to no longer share a data, hotels are severely constrained from marketing directly to a guest which allows them to capture repeat business – the lowest cost and highest value travelers. Hotels also require this data to effectively market to previous guests, so ownership of this data will be a significant factor as hotels and OTAs move forward. Another issue is the increasing shift to mobile travel bookings. Mobile will account for more than half of all online travel bookings next year, and 78.6% of them will use their smartphone to make those reservations. As a result, hotels must have a robust mobile marketing plan in place, which means responsive design, one-click booking, and location technology. Another important mobile marketing element is a “Click-to-Call” feature. According to a recent Google survey, 68% of hotel guests report that it is extremely/very important to be able to call a hotel during the purchase phase, and 58% are very likely to call a hotel if the capability is available in a smartphone search. The June Hotel Business Review will report on some of these issues and strategies, and examine how some sales and marketing professionals are integrating them into their operations.