Article Excerpt:
TWST: What is Winston Hotels today?Mr. Green: Winston Hotels went public in June 1994, and since then we have evolved primarily through four growth strategies. In no particular order, first, we buy hotels that have a reasonable track record and reasonably predictable cash flow. Second, we buy properties where we can add value. For example, we may buy an independent hotel that can be renovated and repositioned into a major brand, such as a Courtyard by Marriott or Hilton Garden Inn. We execute this strategy through a joint venture with Bay North Partners, a Boston-based money manager. The third growth strategy is development, whereby we develop properties in carefully selected markets. Our activity in this strategy primarily is in the eastern part of the United States, but also we are considering opportunities throughout the country. Currently, we have several developments in various stages. The fourth growth strategy involves a debt platform through which we lend money to the hospitality industry. We make capital available for development, acquisitions, refinancings and significant capital improvements. We recently announced a relationship with GE Capital designed to provide a seamless nationwide one-stop shop lending program that lends up to 85% of a project's cost or value in a single amount with one set of loan documents. I say seamless because within the 85% loan, Winston will typically fund the top 25% of the 85%; so we will hold the first loss piece. GE will take the senior piece, usually up to 65% of cost or value. We are in the process of underwriting several applications submitted under the program. The program enables a borrower to work only with one lender as opposed to a senior lender and a mezzanine lender separately. The program is designed to finance development, acquisitions and the refinancing of projects, and it saves borrowers time and money.
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