BGL Real Estate Advisors Completes Financing for Leading Hotel Development and Management Company
December 02 2010
BGL Real Estate Advisors LLC (BGL) announced today the successful completion of a restructuring and recapitalization of a senior mortgage debt facility for Ascenture Hotel Group, a leading hotel management and development company.
Founded in 2003 and headquartered in Ohio, Ascenture Hotel Group is a dynamic management and development company with expertise in hotel ownership, budget conform, quality development, and construction, as well as hotel management, distribution, marketing, and financing. The company’s portfolio, which extends throughout six states, consists of independent and franchised hotels, including brands from Hilton, IHG, Choice, and Wyndham, as well as properties under development in the Dominican Republic. In 2010, Ascenture earned a distinguished ranking among the Top 100 hotel management firms in the United States.
BGL advised Ascenture Hotel Group and its partners on the restructuring of a senior mortgage debt facility for Cherry Tree Inn & Suites, a 76-unit boutique hotel property located in the popular Midwest vacation destination of Traverse City, Michigan. BGL accessed its extensive network of institutional capital providers and other specialty lending vehicles to complete the restructuring and recapitalization, placing the new senior mortgage debt facility with an opportunistic real estate private equity fund. The new facility reduced Ascenture’s original mortgage debt by 40 percent, thereby substantially increasing the cash flow and net operating income on the property.
Commenting on the transaction, Nico A. Bolzan, Director at BGL said, “We are pleased with the outcome of this transaction. By leveraging our network of focused real estate lenders and private equity sources, we were able to locate a new capital provider for the partners while also lowering Ascenture’s outstanding mortgage debt considerably, freeing up cash flow for possible future funding needs.”
About Brown Gibbons Lang & Company
Brown Gibbons Lang & Company is a leading independent investment bank serving middle market companies and their owners throughout the United States and internationally. BGL’s professionals are active across a number of industry sectors, delivering high-quality mergers & acquisitions advisory services, debt & equity placements, valuations and fairness opinions, and financial restructurings. BGL is the lead U.S. shareholder in Global M&A, the world’s leading partnership of top-tier independent financial advisory firms focusing on mid-market cross-border transactions. For more information, please visit www.bglco.com.
About BGL Real Estate Advisors
BGL Real Estate Advisors provides comprehensive real estate investment banking services to the middle market, which includes real estate advisory, debt and equity placements, financial restructuring, and asset acquisition and disposition. BGL’s services cover the full spectrum of asset classes, including multifamily, student housing, hospitality/leisure, office, retail, industrial, and senior and assisted living properties.