CBRE Arranges $30 Million in Debt for Hampton Inn/Home2 Suites Hotel in Tucson

TUCSON, Arizona – CBRE arranged a $30 million loan for the dual-branded Hampton Inn/ Home2 Suites hotel in Tucson, Ariz.

CBRE’s Adrienne Andrews and Will Denton facilitated the refinancing on behalf of owner Fayth Hospitality.

Located at 141 S. Stone Avenue, the hotel is situated in Downtown Tucson, with proximity to the Tucson Convention Center, the Roman Catholic Diocese of Tucson and St. Augustine Cathedral, plus a host of restaurants on Congress Street. Additionally, the Sun Link Streetcar Light Rail system connects hotel guests to the rest of Downtown Tucson as well as The University of Arizona campus.

The 199-key, dual-branded property opened in late summer of 2021. A national bank lender provided the funding. The seven-year fixed-rate loan includes an earnout, which enabled Fayth Hospitality to pay off the construction loan and provides a future funding upside as the hotel continues to ramp up.

“Given increasing interest rates, we expect to see more requests for fixed-rate debt on assets that are near or at stabilization,” said Andrews. “This property received a lot of interest from a variety of lenders including banks, life companies, and debt funds due to its strategic downtown location in a growing market.”

Added Greg Fay, Managing Partner of Fayth Hospitality, “It was a pleasure working with Adrienne and the entire CBRE on this refinancing of the construction debt on our newly developed Hampton Inn/Home2 Suites. We were extremely pleased with the lender interest in our hotel financing and ultimately selected a nationally known lender.”

The CBRE Hotels team in Arizona, led by Andrews and supported by Denton, specializes in hotel financings, both regionally and nationwide.