Over a 12-day period from engagement to closing, JDI Realty successfully funded a $4,200,000 bridge loan for the acquisition and repositioning of a 33-key hospitality property, located in the heart of the Rocky Mountains, in the town of Crested Butte, Colorado. The hotel had been owned and operated by one family for over two decades and our borrower, who specializes in boutique, branded and strategically positioned hospitality products, was awarded the off-market transaction. The sponsor was jilted by another lender shortly before the required acquisition date and JDI was able to quickly step in with the necessary financing, assuring the sponsor of its ability to close the transaction. Believing, as locals, that it was their responsibility to keep hospitality affordable in this wealthy enclave, the sellers had consciously held down average daily rates for the previous five years despite substantial increases in area visitation due both to Covid travel and to Vail Resort's acquisition of the Mt. Crested Butte ski area. Acquiring, through this asset, about 35% of the town’s limited hotel room inventory, and with a town predisposition toward the limitation of short-term rental licenses, sponsorship believes a thoughtful renovation, continued solicitous property management, selective amenity enhancements and a much more market sensitive yield management program will offer compelling future operating growth.
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