Dallas-based Hall Structured Finance (HSF) closed a new first lien construction loan totaling $23.2 million to finance the development of a dual-flagged, 233-room Hyatt House and Hyatt Place hotel in East Moline, Illinois, part of the Quad Cities region in Illinois and Iowa.
This will be Hyatt's first development of a blended dual-flagged hotel, with a shared front desk and lobby amenities, and will serve as the company's prototype for future dual-flagged developments. Dan Murphy with Great River, LLC is the project's sponsor.
"The project's superior location right on the Mississippi River, strong local economic climate and distinguished Hyatt flag made this a model investment for us," said Mike Jaynes, President of HALL Structured Finance. "With four of the area's largest employers located within five miles of the planned hotel, both visitors and locals will greatly appreciate this new amenity."
The nine-story, 233-room hotel will feature 134 upscale Hyatt Place rooms and 99 all-suite extended-stay Hyatt House rooms, and will be operated by Olympia Hotel Management. Great River LLC, in conjunction with the City of East Moline, has plans to develop the 132-acre site of the former Case/International Harvester plant, where the hotel will be located, into a mixed-use development in two phases.
The first phase is 42 acres and will include the new hotel, 324 class-A multi-family units and a public park. In addition, two restaurants and four retail sites are expected to soon be under development. A 60-mile jogging and biking trail also runs along the levy that separates the hotel from the Mississippi River.
"Working with HALL Structured Finance has been a great experience – from the first site visit to the loan closure, they worked to provide a specialized capital solution to meet our needs," said Dan Murphy, President of Great River, LLC. "This hotel and overall development will be an exciting addition to the Quad Cities area and we're looking forward to completing the development."
Hyatt Place is an upscale, select-service hotel product with a modern design and fresh aesthetic. There are currently 248 Hyatt Place properties open across 12 countries. The Hyatt House product is designed to be an upscale, modern, extended-stay hotel and is an all-suite configuration, with some units built "residential-style" with full kitchens. There are currently 68 Hyatt House properties open across the U.S.