Cronheim Hotel Capital secures $23.6 million for Holiday Inn Resort

Surfside Beach, SC Cronheim Hotel Capital (CHC) has secured $23.6 million for the refinance the recently converted Holiday Inn Resort. The financing was originated with a regional bank and provided the sponsor a return of capital for improvements that had been completed since acquisition. 

The co-sponsors, Innisfree Hotels and RREAF Holdings, purchased the property as an independent hotel in late 2023 and invested significant capital to convert to a Holiday Inn Resort. The Sponsors recognized the irreplaceable real estate and the value-add potential of combining it with a family-oriented reservation system like IHG. 

Michael McGuire, executive vice president, said, “Innisfree is the best in the business when it comes to beachfront conversions. But even with their track record, the current lack of liquidity in the debt markets made this a tough assignment. I leveraged my extensive banking network to find an accretive option that allowed for a return of capital, which is not easy to do right now.” 

McGuire also said, “Refinancing value-add plays can be an uphill climb, but it helps having sponsors with as solid a track record and as professional an approach as Innisfree and RREAF. They focus a lot on their corporate culture, and the positive attitude transfers over to all aspects of the business…even financing transactions.”