Daily News: January 22, 2014

GE Capital Provides $31.6MM Construction Loan


GE Capital’s Franchise Finance business said it has provided a $31.6 million term loan to NewcrestImage to replace the short-term financing used for the construction of a dual-branded Marriott hotel property.

“We’re targeting two different price points and hotel segments — in this case, select service and extended stay. We’ve achieved construction cost and operating efficiencies by sharing facilities and resources, such as van service, laundry facilities and meeting space, as well as the general manager and the sales force.”

NewcrestImage, a hotel management and construction company based in Irving, TX, has recently opened a Courtyard by Marriott, which has 181 rooms, and a TownePlace Suites by Marriott, which has 120 rooms, on this property. The conjoined hotels are located less than five miles from Dallas Fort Worth Airport in Grapevine, TX, an affluent suburb of Dallas.

“Dual branding is a concept that’s growing in popularity and we’re pleased to be at the leading edge of hotel development,” said Mehul Patel, chairman and chief executive officer of NewcrestImage. “We’re targeting two different price points and hotel segments — in this case, select service and extended stay. We’ve achieved construction cost and operating efficiencies by sharing facilities and resources, such as van service, laundry facilities and meeting space, as well as the general manager and the sales force.”

“We were able to close on NewcrestImage’s construction take-out loan immediately after they received their certificate of occupancy,” said Scott Andrews, a managing director with GE Capital, Franchise Finance. “Construction take-out financing is a valuable option to offer to experienced franchise hotel developers who are expanding their businesses.”