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**MetroGroup Arranges $13.9M Loan for Best Western Hotel Conversion in San Mateo**
MetroGroup Realty Finance has secured a $13.9 million loan to support the conversion of a 99-key Best Western hotel in San Mateo into a Home2 Suites by Hilton. The financing arrangement was led by MetroGroup Vice President J.D. Blashaw.
The borrower originally acquired the property using an acquisition bridge loan. Of the total $13.9 million, MetroGroup provided $9.5 million to retire the bridge loan, along with an additional $4.4 million in future funding earmarked for the brand conversion and property upgrades necessary to meet Hilton’s standards.
A Missouri-based national bank issued the floating-rate senior loan. The terms include a five-year structure, with a three-year floating-rate interest-only period during the construction and conversion phase. Upon project stabilization, the borrower has the option to enter into a two-year permanent financing period.
“Our client has an established track record of hotel development and asset management and leveraged their longstanding relationship with Hilton to secure this property in a core market,” said Blashaw. “We were able to provide terms that aligned with their business strategy and risk profile.”
This transaction underscores continued investor interest in hospitality repositioning projects, especially in high-demand markets like San Mateo.
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