CBRE Arranges $30 Million in Debt for Hampton Inn/Home2 Suites Hotel in Tucson, Ariz.

CBRE arranged a $30 million loan for the dual-branded Hampton Inn/ Home2 Suites hotel in Tucson, Ariz.

CBRE’s Adrienne Andrews and Will Denton facilitated the refinancing on behalf of owner Fayth Hospitality.

Located at 141 S. Stone Avenue, the hotel is situated in Downtown Tucson, with proximity to the Tucson Convention Center, the Roman Catholic Diocese of Tucson and St. Augustine Cathedral, plus a host of restaurants on Congress Street. Additionally, the Sun Link Streetcar Light Rail system connects hotel guests to the rest of Downtown Tucson as well as The University of Arizona campus.

The 199-key, dual-branded property opened in late summer of 2021. A national bank lender provided the funding. The seven-year fixed-rate loan includes an earnout, which enabled Fayth Hospitality to pay off the construction loan and provides a future funding upside as the hotel continues to ramp up.

“Given increasing interest rates, we expect to see more requests for fixed-rate debt on assets that are near or at stabilization,” said Andrews. “This property received a lot of interest from a variety of lenders including banks, life companies, and debt funds due to its strategic downtown location in a growing market.”

Added Greg Fay, Managing Partner of Fayth Hospitality, “It was a pleasure working with Adrienne and the entire CBRE on this refinancing of the construction debt on our newly developed Hampton Inn/ Home2 Suites. We were extremely pleased with the lender interest in our hotel financing and ultimately selected a nationally known lender.”

The CBRE Hotels team in Arizona, led by Andrews and supported by Denton, specializes in hotel financings, both regionally and nationwide.

About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2021 revenue). The company has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.

About Fayth Hospitality Group, LLC
Fayth Hospitality Group, LLC (FHG) was formed in 2018 to continue the hotel investment efforts of a group of family offices. The two principles are Randy Churchey and Greg Fay, who have each been in the hotel business for over 20 years. Together Greg and Randy have extensive experience in all aspects of the lodging business, including ground-up development, acquisition, hotel property management and investment management. FHG opportunistically invests in select and compact full-service hotels located in the continental United States.