Hotel Investment Group to Build Marriott in Southern California
The San Diego-based firm will construct 181-key hotel located at a 3.28-acre site in San Bernardino County
The hospitality sector suffered greatly in 2020 with travel severely restricted to curb the spread of coronavirus. But now hotels are coming back.
The aptly named Hotel Investment Group has secured construction financing for a Marriott hotel in the Southern California city of Barstow. Black Bear Capital Partners (BBCP), a real estate financial advisory firm and subsidiary of Black Bear Asset Management, announced and arranged the three-year, $24.4 million, fixed-rate loan at a 75 percent loan-to-cost ratio. L.A.-based GreenLake Asset Management was the lender.
The San Diego-based Hotel Investment Group will construct an 181-key hotel located at a 3.28-acre site at 2551 Mercantile Way in Barstow, in the Inland Empire’s San Bernardino Valley. The four-story asset is expected to be ready by the start of 2023.
The dual-branded facility will be associated with TownePlace Suites, which is Marriott International’s mid-priced, upper-midscale, and extended stay brand that targets business travelers. It will also include the Fairfield Inn & Suites, Marriott International’s second-largest brand and primary economy brand in the upper-midscale tier.
Action is picking up for hotel financing as the economy opens up. AECOM Capital and Combined Properties recently landed $505 million in financing for the Pendry West Hollywood, which encompasses a full city block along the Sunset Strip in West Hollywood. Also, Starwood extended its loan for the massive Broadway Trade Center project in Downtown L.A., which will include about 150 boutique hotel rooms.
It seems like it was a hotel day all around. On the East Coast, Commercial Observer reported today that CleanFund supplied $21.6 million for the development of a luxury boutique hotel in New York’s Hudson Valley. And Driftwood Capital acquired the Hyatt Regency Fairfax, a 316-key hotel in Virginia, and will rebrand the property as a Hilton.