What is the maturity date of the Tempe Loan for Surestay Hotel By Best Western?
Surestay_Hotel_By_Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
and 2023, the Company was in compliance with all covenants.
DevCo Tempe
In October 2020, DevCo Tempe entered into the Tempe Loan with UMB Bank. Under terms of the Tempe Loan, DevCo Tempe can request advances up to $15.3 million. For the period November 1, 2020 through October 31, 2023, interest on the outstanding principal balance of the Tempe Loan was due and payable monthly. Beginning November 1, 2023, through the maturity date of October 2, 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 Tempe 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 the 2025 FDD, the Tempe Loan that BWI DevCo Tempe, LLC entered into with UMB Bank in October 2020 has a maturity date of October 2, 2027. Under the terms of this loan, advances up to $15.3 million could be requested.
For the period from November 1, 2020, to October 31, 2023, only interest was due monthly on the outstanding principal. However, starting November 1, 2023, principal and interest payments are due in an amount determined by UMB to be sufficient to amortize the outstanding principal balance over a 25-year period, until the October 2, 2027 maturity date.
The outstanding principal balance is due on the maturity date. This means that Surestay Hotel By Best Western, through its subsidiary, will need to have a plan to repay the remaining balance by October 2, 2027, either through refinancing or other means.