ValueXpress Obtains $1.65-Million Loan for the Purchase and Reflagging of a Limited-Service Hotel in Texas

ValueXpress obtained a $1,650,000 first-mortgage loan to be utilized for the acquisition of a limited-service hotel located in southern Texas. The loan was co-originated with a ValueXpress partner bank located in Texas utilizing the SBA 7(a) loan guaranty program. The transaction was challenging since the property is a less-desirable exterior-corridor hotel that was losing its mid-tier franchise. As the market in which the property is located is well represented by most of the major franchises, only a budget-level franchise was available. This presented an underwriting challenge to determine the anticipated level of ADR and occupancy under the new franchise. ValueXpress prepared a complete market study at no charge to the client to determine projected revenue, operating expenses, and estimated property value. The work enabled the property buyer to negotiate a discount to the contract price based on outcome of the market study. “This is an example of the extra mile we go to help our clients,” commented Jay Bhakta, a senior loan originator who represented ValueXpress in the transaction.

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