Cushman & Wakefield Sonnenblick Goldman (CWSG) and Starwood Property Trust have completed a $23 million refinancing and arrangement of up to $13 million in construction financing for the City Club Hotel in midtown Manhattan.
The loan will allow for the construction of up to 66 additional rooms to be built above the existing small luxury hotel, home to Daniel Boulud's DB Bistro Moderne.
‘The availability of creative capital for the hospitality sector continues to increase with each passing month,’ says Jared Kelso, a senior director with CWSG who represented City Club Hotel in arranging the deal.
Boyd Fellows, president of Starwood Property Trust, adds that hotel values in New York and other major metropolitan markets have rebounded due to a return of corporate travel and the strength of tourism, which are driving high occupancy rates.
In recent months, CWSG's U.S. Hospitality Group has been involved in several hotel transactions, including the sales of the Hilton Long Island/Huntington, JW Marriott San Francisco and the Hilton Rye Town in Rye Brook, N.Y., and the $170 million financing of two Times Square hotels. This year, the group has closed, or is currently in the market with, over $1 billion of hospitality financing.
