Peachtree Refis Downtown Columbus Hampton Inn With $26M Loan
By Andrew Coen September 10, 2024 3:23 pm
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Hospitality developer Indus Hotels has secured a $26.4 million loan to recapitalize a Hampton Inn & Suites in Columbus, Ohio, Commercial Observer can first report.
Peachtree Group supplied the 60-month first-mortgage loan on the sponsorship’s Downtown Columbus asset, which it developed from a historic office building into Hampton Inn in 2000. Loan proceeds will be used to refinance the 179-key hotel, which faced a loan maturity from a 2014 commercial mortgage-backed securities transaction. Proceeds also will help implement a $2.5 million property improvement plan of the building, which was last renovated in 2013.
Michael Harper, Peachtree’s president for hotel lending credit, said a combination of the Hampton Inn brand and the property’s healthy financials was attractive from an underwriting perspective. Harper noted that the hotel also benefits from a strong location across the street from the Greater Columbus Convention Center and 1.6 miles south of the Ohio State University campus.
“Hampton Inn & Suites is a category-killer brand that performs really well, and this hotel has a deep track record of performance really ever since it’s been open,” Harper said. “It had really good in-place cash flow when we made the loan.”
Located at 501 North High Street, the hotel has amenities that include an indoor pool, a fitness center and a spa. Harper said the property improvement plan will largely consist of refreshing common areas such as the lobby and breakfast rooms.
Harper said the Columbus market has seen an uptick in business travel of late after initially struggling from the fallout of the COVID-19 pandemic, aided in part by improvements to the convention center that have created more space for events.
“In general, Columbus has been a slower to recover market, but you’re starting to see a big pickup in 2024 with significant growth year-to-date,” Harper said.
Officials at Indus Hotels did not immediately return a request for comment.
Andrew Coen can be reached at acoen@commercialobserver.com
