A hospitality debt fund created in October has closed its first major financing.
Smith Hill Capital and Bain Capital Special Situations provided a $110.8 million loan refinancing a portfolio of four hotels that were acquired through foreclosure and are now owned by Denver-based Stonebridge Cos.
The 954-room portfolio includes the Embassy Suites Flagstaff in Flagstaff, Arizona; Embassy Suites Walnut Creek in Walnut Creek, California; Marriott Bridgewater in Bridgewater, New Jersey; and the W Atlanta Downtown in Atlanta, Georgia.
“The closing of the loan for this hotel portfolio underscores our commitment to navigating the complexities of today’s financial market,” Brendan McCormick, managing principal with Smith Hill Capital, said in a statement.
The hotels were part of five properties formerly owned by Ashford Hospitality Trust, which turned them over to Stonebridge in December.
Stonebridge announced at that time it planned to make various capital improvements at each of the properties.
Representatives of Stonebridge did not respond to CoStar News' request for comment.
Smith Hill Capital in New York is the commercial real estate debt investment management business of Procaccianti Cos. Along with Boston-based Bain Capital, the pair formed a joint venture to originate debt and preferred equity to serve the financing needs of companies and assets in the hospitality sector. The joint venture intends to deploy $1 billion of gross capital over the next several years.