TPI Hospitality secures $ 104 million loan for Margaritaville Resort Fort Myers Beach – Commercial Observer
Strategic capital of Stonehill, a credit division within Peachtree Hotel Group, provided TPI Hotels with $ 104 million in construction debt for the construction of its Margaritaville Hotel in Fort Myers Beach, Florida, learned Commercial Observer.
The loan, initially for 42 months with two extensions, will help fund about 70% of the cost of the sprawling development, which will be housed on seven acres at the north end of Fort Myers Beach, off Estero Boulevard.
After a marathon of about eight years strewn with zoning obstacles, lawsuits, and a pandemic that has shut down the hotel industry and created an economic downturn, TPI is finally starting to see the light at the end of the tunnel for its 254 key complex project.
“[This development] was nothing spontaneous, ”said the ICTY Tom torgerson, who previously held the position of general manager of the company and participated in the progression of several years of the planned development. “I don’t know anywhere else, except maybe on the California coast, where it can take years between seeing and opening up. We all knew we had something great here. It was a challenge, but we think the payoff at the end of the day will pay off. It was a double marathon, for sure.
TPI officially inaugurated the project last month and currently still has 23 months on its construction schedule, according to the company – it is aiming for an opening in late summer 2023.
“We were faced with the pandemic, and this has led to an almost complete shutdown of financial markets for new construction hotels,” Torgerson said. “So we had originally planned to go [with a conventional bank] but I had to go with someone like Stonehill, who could get more creative.
Stonehill’s funding was just one more step in its campaign to help fill the void that currently exists in the hotel construction debt market. More recently, the lender provided a loan of $ 28 million to finance the construction of a Marriott SpringHill Suites hotel in Tampa.
“It’s always a tough space,” said Stonehill president Crosswy rugs. “Regional banks which generally provide a lot of capital [for hotel construction] are not trying to expand their exposure, so space has been opened up, outside of debt funds. This is a good opportunity to get in and provide capital in an empty space right now. We will continue to grow there.
TPI Margaritaville Resort Fort Myers Beach will feature a vast mix of two key club and lounge spaces and six food and drink offerings, which will cater not only to resort guests, but locals and tourists alike. The company predicts that about half of the food and beverage outlet business will be conducted locally and that about half of its revenue will come from non-hosting aspects of the project, according to the CEO. by TPI. Bill Upshaw and chief investment officer Chris Flagg.
“We all fell in love with the Margaritaville brand,” Upshaw said. “It’s a lifestyle brand that creates a vibe and tone that you don’t get from other brands.”
The waterfront project will include a spa; a 1.5 acre beach club; and a 43,000-square-foot raised outdoor patio that will overlook the beach and resort amenities, and can be used for a variety of events, Torgerson said. He added that there will be a ballroom that will open onto the outdoor terrace that overlooks the ocean; about 50 percent of the rooms in the resort will open onto the terrace.
The beach club includes a poolside soundstage for live music, and there are three other areas throughout the resort for groups to tune in and play, Flagg said.
“We looked at the sponsorship and its ability to execute and complete the project. Recreation in the car has been resilient amid COVID, and even thinking back to the Great Recession, ”Crosswy said. “Margaritaville brand assets performed well, including food and beverage products [offerings]. Fort Myers is accessible by car and plane, and depends on recreation, and [the resort] is principal and principal in Fort Myers Beach.
Mack Burke can be contacted at [email protected].