Magnuson Hotels hikes loan limit for affiliates
Hoteliers now can borrow as much as $1.5 million for remodels, equipmentFebruary 14th, 2013
Magnuson Worldwide, a hotel services business that offers reservation management and branding support with headquarters in Spokane and London, says it now can offer brand-affiliated property owners greater loan options for renovations or equipment upgrades.
Through its Magnuson Hotels division, the company says it has formed a partnership with Texas-based Ascentium Capital LLC that allows hotel owners who qualify to get up to $1.5 million in financing, up from a $250,000 limit previously offered to Magnuson-affiliated hotels.
Tom Magnuson, CEO of Magnuson Worldwide, says nearly $750 million in bank loans already have been made to hotels carrying the company's brand.
Ascentium Capital provides financing for capital expenditures to small businesses nationwide. It's backed by Vulcan Capital, the private investment group of Microsoft Corp. co-founder Paul G. Allen, as well as by a group of investors led by LKCM Capital Group LLC, an investment vehicle for Luther King Capital Management.
Another Spokane-based hospitality services company, FairBridge Inns LLC, has a similar partnership with Ascentium to offer its affiliate hotel owners with loans for rebranding and property improvements. FairBridge Inns provides hotel branding and management services.
Nearly 100 independently owned hotels, with one in Canada and the rest in the U.S., currently operate under Magnuson brands, which include Magnuson Grand Hotels, Magnuson Hotels, and M Star Hotels.
Magnuson asserts that the company's pay-per-booking brand platform offers the industry a contrast to traditional hotel franchises.
He and his wife, Melissa, founded the company in Spokane in 2003. In addition to hotels that carry its brand name, the company provides services, such as reservation management and marketing assistance, to nearly 2,000 hotels across North America and in Europe. All of the hotels in the group, whether under its brand or only receiving services, are independently owned.