Commercial Observer – Stonehill, a direct hospitality lender affiliated with Peachtree Hotel Group, has originated $61.8 million in construction debt for the build out of a planned 212-key Cambria Hotel in Downtown Austin, Texas, Commercial Observer has learned.
The three-year loan was provided to Newport Beach, Calif.-based Stratus Development Partners, who started working to build and open Cambria Hotel-branded properties in 2018 after partnering with the brand’s franchise, Choice Hotels International, that year. The Austin property will be the fourth Cambria Hotel opened by Stratus.
Hospitality Funding and SRF Ventures advised Stratus in the arrangement of the financing, according to an announcement from Hospitality Funding.
“Despite the COVID delay and a very challenging environment for hotel construction financing, we were able to deliver a great execution for our client Stratus Development,” Hospitality Funding Chairman Scott Silver said in a statement. “We are very pleased to close this transaction for the downtown Austin Cambria.”
The planned hotel will rise 15 stories at 70 East Avenue in Austin’s Rainey Street Historic District, an entertainment quarter full of eateries, bars and nightlife attractions. The area is just a few blocks away from Waller Beach at Town Lake Metropolitan Park and the Colorado River, which runs through the center of the city.
The new Cambria Hotel will include a bar and breakfast area in the lobby, conference rooms, a fitness center, a swimming pool with an adjacent outdoor lounge, and a rooftop bar that will have space for events, according to Stonehill.
Stratus broke ground on the hotel last week and expects to wrap construction in 2023. Designed by Newport Beach, Calif.-based Hannouche Architects, the property, which will be situated on a half-acre of land, will include around 224,000 square feet and more than 70 parking spaces.