Cronheim Mortgage Launches Hospitality Finance Platform
Cronheim Mortgage is pleased to announce the formation of Cronheim Hotel Capital (CHC), a dedicated hospitality finance platform to serve the needs of mid-market hotel investors and operators. David Turley and Anna Westhoff who are primarily responsible for the development of Cronheim’s hospitality practice, will lead the effort with the full support of Cronheim Mortgage’s experienced team of commercial real estate finance professionals. The firm will operate from offices in New York, Los Angeles and New Jersey.
“What started as an opportunistic side venture – hotel finance- has developed into one of Cronheim’s core activities,” noted Turley. “The hospitality space is relatively under-served by top-tier mortgage bankers, which has created an enormous opportunity for our firm. Over the past few years we’ve completed 38 hotel transactions totaling over $500MM. We’ve acquired a deep knowledge base and built credibility with both hotel owners and hospitality-focused capital sources. It makes sense for us to formalize our commitment to the hotel industry by spinning off our hospitality platform as a separate business.”
Anna Westhoff pointed to CHC’s wide geographic footprint and asset type experience. “We’ve financed it all,” she said. “Full service resort hotels to economy limited service. Hilton, Marriott, IHG, Choice, Carlson, Best Western-flagged hotels and independents. Suburban and urban. Miami to Seattle, Boston to Fort Worth. We’ve figured it out and financed it.”
Cronheim Mortgage’s CEO, Andrew Stewart, highlighted CHC’s unique value proposition. “CHC will continue to leverage off of Cronheim Mortgage’s deep market credibility, lender relationships, $2 billion servicing portfolio for institutional investors and broad commercial real estate expertise. Most other hotel finance brokers only know and finance hotels. Because Cronheim finances all types of real estate, we are better aligned with capital sources which do the same. This makes us a more effective advocate as we are able to bring capital sources to hotel financing that otherwise would overlook the asset class.”