Philadelphia, PA Cronheim Hotel Capital (CHC) has secured $17.6 million from a regional bank for the refinance of the Fairfield Inn & Suites in Center City Philadelphia. The accretive financing refinanced both senior and subordinate loans on the property resetting the interest rate throughout the stack. The SOFR-based floating rate loan has no prepayment penalty and a fully extended five-year term, giving the sponsor ultimate flexibility to capture interest rate savings and maintain control over the next capital event.
The hotel is in ther city’s CBD, walking distance to cultural hubs and attractions. The hotel assimilates the charm of the city, as thesponsor executed a gut renovation after initially acquiring, taking a dilapidated historic building and transforming it into a destination above typical Fairfield brand standards. The hotel features an onsite restaurant and bar and is set to thrive in 2026, as it is positioned to capture the influx of guests coming to the city in what will be a banner year due to major citywide events (FIFA World Cup, nation’s 250th anniversary, MLB All-Star Game, PGA Championship and more).
David Turley, President of CHC, said “We’re very familiar with the property having financed it multiple times. The sponsor has done a tremendous job as the steward of this asset from inception and has created irreplicable operational efficiencies. While the asset itself was an easy sell, the complex capital structure layered with senior and subordinate pieces precluded many traditional sources from entertaining the deal. We ran our typical thorough process and landed on a trusted banking relationship that understands hotels better than most and was comfortable with all the moving pieces. We’re thrilled with the outcome and happy our client has a cheaper, cleaner cap stack in place.”