What is the maturity date of the Denver Loan for Surestay Hotel By Best Western?
Surestay_Hotel_By_Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
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November 30, 2024
(17) Construction Loans
Denver 3560
In March 2020, Denver 3560 entered into an initial Construction Loan Agreement (the "Denver Loan") with UMB Bank, which allowed Denver 3560 to request advances up to $21.6 million. In July 2021, this Denver Loan was modified to increase the availability of loan advances from $21.6 million to $24.4 million. For the period May 1, 2020 through April 1, 2023, interest on the outstanding principal balance of the Denver Loan was due and payable monthly. Beginning April 1, 2023, through the maturity date of March 11, 2027, principal and interest are due and payable in an amount determined by UMB to be sufficient to amortize the outstanding principal balance of the Denver Loan over a twenty-five (25) year period. The outstanding
Source: Item 23 — Receipts (FDD pages 88–286)
What This Means (2025 FDD)
According to Surestay Hotel By Best Western's 2025 Franchise Disclosure Document, the Denver Loan, which Denver 3560 entered into with UMB Bank, has a maturity date of March 11, 2027. This loan was initially established in March 2020 for up to $21.6 million and was later modified in July 2021 to increase the availability to $24.4 million.
Interest on the outstanding principal balance was payable monthly from May 1, 2020, to April 1, 2023. Following this period, starting April 1, 2023, principal and interest payments are structured to amortize the loan over a 25-year period, as determined by UMB. The remaining principal balance is due on the March 11, 2027, maturity date.
This information is relevant to potential Surestay Hotel By Best Western franchisees as it provides insight into the financial obligations and loan structures associated with hotel development and operation within the Best Western system. Understanding the terms and maturity dates of such loans can help franchisees assess the financial health and stability of related entities and the broader network.