GE Capital’s Franchise Finance business announced today that it has provided a $45 million real estate-secured revolving credit facility to new customer Platinum Hospitality Management, an affiliate of Platinum Companies. Based in Hermitage, TN, a suburb of Nashville, Platinum operates several premium-branded, select service hotels under the Marriott, Hilton and Intercontinental brands.
Targeted at mid-market hotel franchisees, this new credit facility format provides for interest-only payments and no pre-payment fees while allowing borrowers to move properties into and out of the facility.
“When an opportunity comes up to buy a hotel, I need to move quickly,” said Mitch Patel, president / CEO of Platinum Companies. “In the past, it could take 60 days to line up financing with other lenders. Because of GE Capital, I now have a secured credit facility that I can tap whenever it’s necessary. This allows Platinum to take advantages of opportunities as they arise by providing REIT-like buying power and execution.”
“As the commercial real estate markets improve, limited-service hotels are becoming attractive properties for investors,” said Jim Petty, senior vice president of hotel originations with GE Capital, Franchise Finance. “Our goal in designing this financing product was to give owners the flexibility to make acquisition decisions on the spot, without delays. As their businesses continue to grow, owners can move properties in and out of the credit facility as necessary.”
In Platinum’s case, the initial credit facility currently contains three properties located in Texas and Tennessee and valued at approximately $30 million.
Franchise Finance provides financing to experienced multi-unit limited and select service branded hotel operators across the U.S. In addition to its new real estate-secured revolving credit facility, it also provides funds for refinancings and acquisitions.
Platinum Hospitality Management is the management division of Platinum Companies, a second-generation, vertically-integrated hospitality company which owns, builds and manages mid-market, focused service hotels. It maintains key strategic relationships with leading brands, including Hilton, Marriott, Intercontinental and Starwood.