HFF secures $9.9 million in financing for California boutique hotels

The San Francisco and Orange County offices of HFF (Holliday Fenoglio Fowler, L.P.) announced today that they secured $9.9 million in financing for The Springs of Palm Springs Hotel in Palm Springs and The Orchid Inn in San Simeon, California.

Working exclusively on behalf of Broughton Hospitality, HFF managing director Bruce Ganong and director Austin Rosen placed a three-year, adjustable-rate loans for the acquisition and renovation of each hotel. East West Bank provided a $4.38 million loan for The Springs of Palm Springs and Pacific National Bank provided a $5.53 million loan for The Orchid Inn. Broughton Hospitality is a Newport Beach, California-based hospitality management and development organization.

The Springs of Palm Springs is a 25-room boutique hotel with a 3,000-square-foot spa and 6,000 square feet of retail space. Originally built in 1935 as The Royal Palms Hotel, the property underwent a significant renovation in 2005. Guest rooms feature Spanish Revival décor, fireplaces, oversized Jacuzzi tubs and separate walk-in showers and will be also be updated with flat-panel televisions, French Press coffee makers, Molton Brown amenities and mini-bars. The Springs of Palm Springs is located at 227 North Indian Canyon Drive close to the Convention Center, the Spa Resort Casino, and numerous restaurants and golf courses in Palm Springs.

The Orchid Inn is a 55-room boutique hotel and spa located on the California Central Coast close to Hearst Castle and Cambria in San Simeon, California. Plans for a significant renovation include refurbishing and upgrading all of the rooms within the next six months with flat panel televisions, mini-bars, new bedding and other contemporary amenities, along with improving bathrooms.

“The Orchid Inn will soon be the premier boutique hotel on the Central California Coast,” said Rosen. “It is situated on the ocean side of historic Highway One, overlooking the rugged coastline and is a perfect vacation retreat for those sight-seeing nearby or enjoying a scenic drive from Los Angeles to San Francisco.”

HFF (NYSE: HF) operates out of 18 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF offers clients a fully integrated national capital markets platform including debt placement, investment sales, structured finance, private equity, note sales and note sale advisory services and commercial loan servicing.

Contacts:

BRUCE GANONG AUSTIN ROSEN LAURIE FISH MCDOWELL
HFF Managing Director HFF Director HFF Associate Director, Marketing
(415) 276-6300 (949) 798-4124 (617) 338-0990
bganong@hfflp.com arosen@hfflp.com lmcdowell@hfflp.com