Loan for $40.5 million will start two Woodland hotels

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By Ben van der Meer  –  Senior Reporter, Sacramento Business Journal

Jun 29, 2022

A new wave of hotel proposals in a post-pandemic world is about to wash up in Woodland next.

Dallas-based Hall Structured Finance has provided a $40.5 million loan to kick off construction of two hotels in that city, a 95-room Home2 Suites by Hilton and a 109-room Courtyard by Marriott.

“For us, the biggest factor was the sponsor, American Hospitality Services,” said Brian Mitchell, vice president of origination with Hall Structured Finance. “He’s knowledgeable about that market.”

American Hospitality Services CEO Rohit Ranchhod has nine hotels in Northern California, including two in Woodland — a Fairfield Inn and a Holiday Inn Express. Both hotels are running at 85% occupancy or better, Mitchell said, putting them back at their pre-Covid-19 levels.

The performance of those hotels, both off Interstate 5, is also a good sign for the Home2 Suites and Courtyard by Marriott, which will be nearby at 1981 E. Main St./441 Douglas Lane, near the Road 102 interchange with I-5.

Mitchell said the nature of the loan, closed in the last few weeks, requires construction to start within 30 days. The Home2 Suites should take about 15 months to build, while the Courtyard by Marriott should be done in about 18 months.

Home2 Suites features extended-stay rooms, Mitchell said, with that plus both hotels’ new construction likely to be appealing to travelers.

A message left through American Hospitality Services’ website Tuesday was not returned.

Ryan Bosch of Scottsdale, Arizona-based Arriba Capital, which helped arrange financing, described the loans in a news release as 80% of the project cost, making the total project about $50.6 million.

Woodland’s hotel surge may not be done yet. Spencer Bowen, a city spokesman, noted construction is expected to start soon on a 109-room Staybridge Suites hotel at Main Street and Highway 113, closer to downtown Woodland.

That hotel project, as well as the two by American Hospitality, received fee deferrals from the city. Those fees will be paid with interest after the hotels are open and operating.