- What The approximately $20m loan was for acquisition and renovations
- Why Sunray Group is utilizing a “cluster ownership” strategy to reduce operating costs
- What next Some of the proceeds are for upgrades
Roynat Capital has written an approximately $20m loan to fund the acquisition and renovation of the 124-room Four Points by Sheraton in Cambridge, Ont., Green Street News can reveal.
The loan funded in early September. The borrower was 210 Preston Parkway Inc., which is owned by Ray Gupta. The Sunray Group of Hotels, also owned by Gupta, manages the property. Four Points by Sheraton is an upscale brand of Marriott International.
Reap Capital was the debt advisor on the deal. Roynat Capital is a subsidiary of Scotiabank.
Some of the proceeds will go toward renovations at the hotel, in particular a property improvement plan with Marriott to bring the hotel up to new brand standards.
The six-storey hotel is on 1.5 acres and has an indoor heated saltwater pool and three meeting rooms. Other amenities include a fitness facility, a restaurant and a dry-cleaning service.
Sunray is said to have strategically expanded its presence in the Waterloo region by acquiring the Four Points by Sheraton property, near the junction of Highways 8 and 401.
The group is utilizing a “cluster ownership” strategy to reduce operating costs through cost-sharing by controlling more than 25% of the hotel market in the area.
Before taking ownership of the Four Points by Sheraton, Sunray had entered into a lease-to-own agreement in 2023, improving profit margins.
