Acquisitions & Hotel Openings

Sonnenblick-Eichner Company Arranges $16.75 MM Loan for Acquisition of Normandy Hotel in Washington, DC

BEVERLY HILLS, CA. November 6, 2017 - Sonnenblick-Eichner Company has secured $16,750,000 of acquisition financing for the purchase of the 75-room Normandy Hotel, located in the upscale Kalorama neighborhood of Washington, D.C. The property was acquired by Blu Kalorama Hotel, L.P. based in Santa Barbara, California

The buyer has a long track record in the acquisition and repositioning of hotel properties and plans to upgrade the hotel and utilize their management expertise to bring hotel operations in line with its competitive set. Washington, D.C. is one of the strongest performing lodging markets in the nation.

“We generated a tremendous amount of lender interest due to our client’s experience of demonstrating how a property like the Normandy Hotel is perfectly suited for a repositioning,” said Sonnenblick-Eichner Company Principal Elliot Eichner.

“Our client had a short timeframe to clear contingencies and be at risk with a non-refundable deposit. We were able to bring certainty of execution within a compressed timeframe,” commented Patrick Brown, also a Principal at Sonnenblick-Eichner Company.

About Sonnenblick-Eichner Company

Sonnenblick-Eichner Company (www.sonneich.com) is a Beverly Hills-based real estate investment banking firm that specializes in arranging structured finance for acquisition, construction and permanent loans, interim and mezzanine financing as well as joint-venture equity transactions. The company is recognized for its expertise in marketing institutional real estate for sale and providing capital for all product types including retail, office, hospitality, industrial, and multifamily properties.

Coming Up In The December Online Hotel Business Review

Feature Focus
Hotel Law: Issues & Events
There is not a single area of a hotel’s operation that isn’t touched by some aspect of the law. Hotels and management companies employ an army of lawyers to advise and, if necessary, litigate issues which arise in the course of conducting their business. These lawyers typically specialize in specific areas of the law – real estate, construction, development, leasing, liability, franchising, food & beverage, human resources, environmental, insurance, taxes and more. In addition, issues and events can occur within the industry that have a major impact on the whole, and can spur further legal activity. One event which is certain to cause repercussions is Marriott International’s acquisition of Starwood Hotels and Resorts Worldwide. This newly combined company is now the largest hotel company in the world, encompassing 30 hotel brands, 5,500 hotels under management, and 1.1 million hotel rooms worldwide. In the hospitality industry, scale is particularly important – the most profitable companies are those with the most rooms in the most locations. As a result, this mega- transaction is likely to provoke an increase in Mergers & Acquisitions industry-wide. Many experts believe other larger hotel companies will now join forces with smaller operators to avoid being outpaced in the market. Companies that had not previously considered consolidation are now more likely to do so. Another legal issue facing the industry is the regulation of alternative lodging companies such as Airbnb and other firms that offer private, short-term rentals. Cities like San Francisco, Los Angeles and Santa Monica are at the forefront of efforts to legalize and control short-term rentals. However, those cities are finding it’s much easier to adopt regulations on short-term rentals than it is to actually enforce them. The December issue of Hotel Business Review will examine these and other critical issues pertaining to hotel law and how some companies are adapting to them.