Barstow Dual-Branded Marriott Gets Cleared for Development

Black Bear Capital Partners (BBCP) recently arranged $24.4 million in financing on behalf of Hotel Investment Group for the construction of a dual-branded Marriott hotel in Barstow, CA. The three-year $24.4 million fixed-rate loan on behalf of Hotel Investment Group, which represents a 75 percent loan-to-cost, will be used to fund the construction of the 181-key hotel located at 2551 Mercantile Way. Los Angeles-based GreenLake Asset Management LLC was the lender.

The 3.28-acre site is currently cleared and ready for development, and will feature a four-story limited-service dual-branded lodging facility that is scheduled for delivery on January 1, 2023. Once completed, the hotel will include 181 rooms and be associated with both the TownePlace Suites brand (Marriott International’s mid-priced, upper midscale and extended stay brand that targets business travelers staying for multiple nights or weeks) as well as the Fairfield Inn & Suites brand (Marriott International’s second-largest brand and primary economy brand in the upper-midscale tier).

BCCP financed the hotel an above-market leverage point. Suraj Desai, who joined BBCP in February to spearhead the firm’s hospitality advisory practice, arranged the financing package.

“To secure construction financing for ground-up hotel projects at any leverage point in today’s environment is an arduous task,” says Desai. “Our client’s optimism toward the city of Barstow allowed us to source the capital behind the first Marriott product in the market.”