Cronheim Hotel Capital secures $12.805 million for acquisition of Sonesta portfolio at Allentown Bethlehem Airport

Allentown, PA Cronheim Hotel Capital (CHC) has secured $12.8 million from a conventional bank lender for the acquisition and renovation of the Sonesta Select and Sonesta ES. The 68% LTC, five-year floating rate loan financing features 18 months of interest only, giving the sponsor runway to complete their capex intensive plans and reposition the properties. 

The properties are located near a mix of demand drivers, including the Lehigh Valley International Airport, Lehigh University and Lehigh Valley Health Network. 

David Turley, president of CHC, said, “The sponsor acquired two underperforming hotels from a corporate owner/operator with negative cash flow in place, posing a challenging financing assignment. We leaned on the Sponsor’s track record executing similar turnaround plays and were able to place the deal with a conventional, hotel-savvy bank. This is a great example of our ability to find attractive solutions with bank lenders for proforma-reliant profiles that would otherwise be forced to go the more expensive bridge lender route.”