Canadian Hotel REIT Refinances $177m Loan
Canadian hotel real estate investment trust (REIT) InnVest announced it refinanced a $177m mortgage backed by 40 hotel properties. The refinanced loan has a three-year term and an interest rate of 7.5% and is expected to close in 30 days. The original loan was set to mature in July 2010. “We are pleased to have achieved this hotel financing in the current lending environment. Our priority continues to be to proactively strengthen our balance sheet and liquidity during this challenging period,” said InnVest president and CEO Kenneth Gibson. “Having addressed this maturity, InnVest does not have any significant debt maturities until 2011.” The REIT said its portfolio of 145 properties containing 19,000 guest rooms is the largest hotel portfolio in Canada. It has an interest in the country’s largest hotel franchisor, Choice Hotels Canada, and operates hotels under a variety of brands, including Comfort Inn, Holiday Inn, Radisson, Hilton, Sheraton Suites and Best Western. Write to Austin Kilgore.