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**MetroGroup Arranges $13.9M Loan for Best Western 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 into a Home2 Suites by Hilton in San Mateo, California. The financing was led by Vice President J.D. Blashaw and tailored to assist with both the acquisition and transformation of the property.
The borrower initially acquired the hotel using an acquisition bridge loan. MetroGroup’s funding package included an initial $9.5 million to retire the bridge loan and an additional $4.4 million allocated for future improvements aligned with the brand conversion.
The floating-rate senior loan was secured through a national bank headquartered in Missouri. Structured with a five-year term, the loan includes a three-year floating-rate period with interest-only payments during the construction and rebranding phase. Upon project stabilization, a two-year permanent financing option becomes available.
“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 our client terms that fit their business plan and risk objectives.”
This strategic financing underscores MetroGroup’s continued commitment to hospitality-focused real estate projects with value-add potential.
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