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 golf
course. This hotel offers high speed internet. The Hotel Indigo is a sophisticated, Full-service hotel near the Albany
International Airport (ALB), providing a complimentary shuttle to the airport. Our boutique hotel in Albany, NY is ideal
for 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
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 this
Located approximately one mile from the _______ Airport, our eastern _______ hotel provides a friendly and
comfortable environment for our guests. Our hotel located in _________ is also minutes from Lehigh University. Visitors
are sure to enjoy their vacation while lodging in our ________ which is in close proximity to many prominent Bethlehem
attractions. Dorney Park and Wild Water Kingdom, Lost River Caverns, the Promenade Shops, the Crayola Factory, and
the exciting new Las Vegas Sands Bethlehem Casino are just a few of the many attractions that are within easy driving
distance of our hotel.
431 Howe Avenue
2nd Floor
Shelton, CT. 06484
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 this
Known 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 outstanding
amenities for any business or leisure trip.
Website:
431 Howe Avenue
2nd Floor
Shelton, CT. 06484
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. •Non-Recourse
•30 year amortization
•10 year fixed term
•We are looking for maximum proceeds on this
Our hotel, just outside of _________, offers all-suite accommodations and hotel specials perfect for both short-term and
extended stay guests in the greater Rochester area. Our _______, nestled in the famed Finger Lakes Region of Western
New York, puts guests staying here minutes from lush vineyards and wineries, Lake Ontario, Canandaigua, and historic
Downtown Rochester.
Website:
Location Map:
431 Howe Avenue
2nd Floor
Shelton, CT. 06484
9. Portfolio Totals:
•Current Loan Amount: $32,500,000
•Operating Revenues: $10,280,563.02
•Portfolio NOI: $3,907,598.30
Proposed 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 loan
amount)
431 Howe Avenue
2nd Floor
Shelton, CT. 06484
10. Sources and Uses
10 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. The 10 year yield is currently below 5% for only the third time in the last 40 years. As witnessed by the above
chart 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 that
started 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 the
massive amount of 10 year fixed rate refinance transactions occurring in the last three years. The trend has been that
conservative 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 the
correct decision. If the view is that rates will remain flat or go lower then a variable rate loan may allow for savings in
the future.
431 Howe Avenue
2nd Floor
Shelton, CT. 06484
