$10.4 Million Loan Request for the

Refinance of the

Holiday Inn/Candlewood Suites of Lynchburg, VA

Terms and Conditions

You are given access to this loan proposal memorandum because Scientific Capital has determined that you (LENDER) have indicated that you have interest in reviewing this loan request and the lending capacity in offering this loan. The information provided in this memorandum is confidential and may only be shared with LENDER’s internal staff and should not be shared with other lenders, brokers, vendors, and third parties unless authorized by Scientific Capital. LENDER is not authorized to pull credit from the borrowers unless the borrowers have signed LENDER’s authorization form.

This memorandum is prepared by Ramin Mostaan and any questions or comments should be directed to him at the following contact information:

Ramin Mostaan
Scientific Capital
949 477 5000 (Office)
949 302 8300 (Cell)
ramin@scicap.com

Transaction Overview

Purpose

To finance the seller carry of $3.6 million and the conversion PIP/Renovation cost of about $6.5 million to turn this Holiday Inn to a dual brand of Holiday Inn/Candlewood Suites. The current owner acquired this 229-room 8-story hotel built in 1984 on 31st day of December 2024 starting the operations on 1/1/2025 at the purchase price of $5.1 million with a seller-carry of $3.6 million with the plan to upgrade the hotel and to add another brand to make it a dual brand. Upon review of multiple options, the owner/borrower has decided to keep the Holiday Inn brand but to add Candlewood Suites by the IHG as well.

Project Strength

The hotel is strategically located in Lynchburg with very close proximity to the major demand generators such as Liberty University, Lynchburg College, Randolph College, Genworth Financials, B&W Nuclear Technology, Areva Inc, etc.
The owners/operator are very experienced with tens of hotels owned and operated in the Virginia, Pennsylvania, Ohio, and West Virginia
The operator lives in Forest VA, only 10 miles from the subject hotel

Project Challenges

The PIP/Renovation budget is fairly large at $6.5 million and takes about 8 to 12 months to complete
The lenders’ appetite for financing hotels with larger renovation budget is low

Proposed Financing Structure

Proposed Collaterals

First Deed of Trust on the subject property and first lien on the security interest
Additional collateral pledged by the borrower: NONE
Additional guarantee pledged by the borrower’s affiliates: NONE

Sources of Repayment

Primary source of repayment: The rent paid by occupants of the subject hotel
Secondary source of repayment: Borrower’s personal excess cashflow and liquid assets
Tertiary source of repayment: Liquidation of the property anticipated to be a 75% loan to appraised value
Final source of repayment: Enforcement of guarantee

Hotel's Financials and Information

Specifications

Address: 601 Main Street, Lynchburg, VA 24504
Rooms: 229
Corridor: Interior
Number of buildings: 1
Number of floors: 8
Building square feet:
Lot size:

Location

Photos

Demand Generators and Customer Segmentation

Centra Health: 2.5 miles
Lynchburg College: 3 miles
Randolph College: 3 miles
Genworth Financials: 3 miles
Framatome North America HQ: 5 miles
Delta Star Inc: 5 miles
Flowserve Corp: 5 miles
C.B. Fleet Co Inc: 5 miles
Liberty University: 6 miles
Frito-Lay Lynchburg plant: 6 miles
BWXT Nuclear Operations: 7 miles
Belvac Production Machinery: 7 miles

Historical Cashflow

STAR reports

Projections

Borrower Financials and Background

Borrowing Entity Structure

The Holiday Inn is owned by “The Lynchburg Grand Hotel LLC” with the following members:

Dhru: 25%, managing member and the hotel operator. Dhru lives in Forest VA only few miles from the hotel
Karan: 25%, managing member. Karan is Dhru’s brother and lives in Yorktown VA
Sunil: 50%, managing member. Sunil is Dhur and Karan’s uncle and lives in Chester VA

Guarantor Financials

Dhrumit: 25% - Guarantor - Operator - Forest, VA

Dhru has extensive hotel management training including Certified Hotel Administrator (CHA), Hotem Management at East Stroudsburgh University, Best Western Manager certificate, and Virginia Real Estate Certificate. He has extensive ownership and management background of which many have been sold and are not reflected in the list below, we only present the ones currently owned and operated:

2023 to present: Hampton Inn of Fredericksburg, VA – Partner
2023 to present: Holiday Inn Express of Blacksburg, PA – Partner
2022 to present: Staybridge Suites of Warrendale, PA – Partner
2022 to present: Comfort Inn of Orange, VA – Partner
2022 to present: Comfort Inn & Suites of Toledo, OH – Partner
2021 to present: Sleep Inn of Liberty, VA – Partner
2021 to present: Courtyard of Toledo, OH – Partner
2020 to present: Fairfield Inn & Suites of Monaca, PA – Manager and partner
2020 to present: Holiday Inn Express of Homestead, PA – Partner and operator
2019 to present: Tru by Hilton of Lynchburg, VA – Built the hotel and is a partner and co-manager
2019 to 2024: Quality Inn & Suites of Caldwell, OH – Co-Supervisor and partner
2018 to present: Hampton Inn of Gretna, VA – Partner
2014 to present: Home2 Suites of Lynchburg, VA – Partner
2008 to present: Days Inn of Altavista, VA – Partner and operator
2007 to 2024: Best Western Inn & Suites of Newport News, VA – manager and partner
2007 to present: Quality Inn of Altavista, VA – manager and partner
2000 to present: Holiday Inn Express of Uniontown, PA – Partner and co-operator