As the industry’s leading expert on structuring successful public/private partnerships for hotel development projects, Stormont Hospitality Group (SHG) has capitalized full-service conference center hotels with unique blends of public and private funds. A sampling of these capital structures includes:
- Development authority “PILOT” bonds and conventional construction lenders as part of a six-lender syndicate representing an allocation of a two-hotel, cross-collateralized $76 million loan.
- Tax increment financing (TIF) totaling $19.3 million along with $7.3 million in private equity and mezz debt and $27.75 million in conventional debt.
- Condominiumized ownership structures for a conference center and parking deck where the city served as owner leasing back to the hotel owner.
- 29% of a large hotel project financing came from public investment consisting of a $5 million grant, a $5 million low interest loan, a training grant, a Payment In Lieu Of Taxes (PILOT) 25-year tax abatement, and various street and waterfront improvements.
- Development Authority “Bond-for-Title” structure allowing for ten year ramp-up of property taxes.
- Annual $500k CVB marketing contribution offsetting hotel operating costs.
As financial advisor, SHG acts as the coordinator of numerous stakeholders bringing divergent interests together for a common goal. In these complex projects, SHG helps the developer overcome all financial, legal and political constraints to achieve a unanimously acceptable outcome between all the stakeholders and their attorneys.
Additionally, Jim Stormont is available to serve as expert witness on behalf of owners, developers and lenders involved in legal disputes.