Eagan finds a buyer for stalled hotel project near Premium Outlets

Plans to build a 123-room Hilton Home2 Suites in Eagan’s Cedar Grove area are back on again after the city found a new developer. Eagan-based JR Hospitality has a purchase agreement with the city’s economic development authority to pay $491,700 for the 0.9-acre site and another $489,300 for use of 129 stalls in a nearby city-owned parking garage.

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How your hotel flag impacts refinancing

Because non-recourse CMBS and other Wall Street institutional investors focus primarily on the property, your hotel’s flag will be a key factor in your lender’s decision.

Hotels with strong brands, such as Marriott and Hilton, that enforce operational and physical standards, support owners by providing sales and management training and tools, negotiate preferred pricing with vendors and generate demand via marketing and membership loyalty programs, are typically better positioned for success with more predictable performance. The risk of the borrower defaulting on the loan is lessened, and if there is a default, the lender is more confident it will have a favorable exit strategy.

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