Hodges Ward Elliott (“HWE”) has been exclusively engaged by Roch Capital (the “Sponsor” or “Borrower”) to arrange a $19.3 million ($119,136 per key / 65% LTC) fixed or floating rate loan (the “Loan”) for the acquisition of the 162-key Aloft Tallahassee Downtown, a recently renovated, select-service hotel located in the heart of Downtown Tallahassee, Florida (the “Hotel” or “Property”). The Hotel is optimally situated at 200 North Monroe Street, 0.5 miles from the Florida State Capitol, and within 1-2 miles of Florida State University (“FSU”) and Florida A&M University (“FAMU”).
The Sponsor, an experienced and well-capitalized hotel owner with existing interests in seven hotel assets, is acquiring the Hotel for $28 million ($172,840 per key). The Aloft Tallahassee Downtown was originally built in 2009, with current ownership completing a $3.4 million renovation in 2024 focused on the lobby, guest rooms, and public spaces. Given the recent renovation, Marriott is requiring a limited change of ownership PIP estimated to cost $500,000.
As of May 2026, the Hotel generated $2.48 million of T-12 NOI, equating to a 12.9% in-place debt yield at 65% LTC. The combination of a recently renovated Marriott-branded asset, minimal near-term capital requirements, a 12.9% in-place debt yield, and a 65% LTC provides lenders with a conservatively structured financing opportunity backed by durable government and university demand.
| Sources | Total | % of Total | Per Key |
|---|---|---|---|
| Senior Debt | $19,300,000 | 65.0% | $119,136 |
| Sponsor Equity | $10,386,000 | 35.0% | $64,111 |
| Total Sources | $29,686,000 | 100.0% | $183,247 |
| Uses | Total | % of Total | Per Key |
|---|---|---|---|
| Property Acquisition | $28,000,000 | 94.3% | $172,840 |
| Capex | $500,000 | 1.7% | $3,086 |
| Lender & Broker Fees | $386,000 | 1.3% | $2,383 |
| Closing Costs | $800,000 | 2.7% | $4,938 |
| Total Uses | $29,686,000 | 100.0% | $183,247 |
| Historical | Projected | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2022 | 2023 | Renovation 2024 | 2025 | May 2026 T-12 |
Yr 1 2027 | Yr 2 2028 | Yr 3 2029 | Yr 4 2030 | Yr 5 2031 |
|
| Net Operating Income | $1,659,852 | $2,318,110 | $1,777,650 | $2,512,720 | $2,481,335 | $2,537,251 | $2,812,262 | $2,910,581 | $2,996,875 | $3,099,397 |
| Debt Yield1 | 8.6% | 12.0% | 9.2% | 13.0% | 12.9% | 13.1% | 14.6% | 15.1% | 15.5% | 16.1% |
| DSCR (I/O) at 6.25% Rate | 1.38x | 1.92x | 1.47x | 2.08x | 2.06x | 2.10x | 2.33x | 2.41x | 2.48x | 2.57x |
1 Calculated based on the requested loan amount of $19,300,000.
Based on the June 2026 STR, the Aloft has continued to strengthen its competitive positioning and now outperforms the competitive set across occupancy, ADR, and RevPAR. As of June 2026 TTM, the Hotel achieved occupancy, ADR, and RevPAR penetration indices of 102.0%, 101.8%, and 103.8%, respectively. May 2026 T-12 NOI of $2.48 million equates to an attractive 12.9% debt yield at 65% LTC, providing lenders with strong in-place cash flow and demonstrated operating momentum.
Marriott has provided the Sponsor with a new 15-year franchise agreement and is requiring only a limited change-of-ownership PIP. The scope is primarily comprised of technology upgrades, cosmetic touch-ups, furniture replacements, and routine life safety and ADA compliance items. Importantly, the PIP does not require guest room, bathroom, lobby, or major public space renovations, reflecting the $3.4 million renovation completed in 2024 and minimizing near-term capital.
The Property is located 0.5 miles from the Florida State Capitol and the Leon County Courthouse, and within 1-2 miles of the primary campuses of Florida State University and Florida A&M University. The surrounding area also includes Cascades Park, Donald L. Tucker Civic Center, a 12,500-seat arena drawing over 500,000 annual visitors, and the CollegeTown district.
The Property benefits from a diversified demand base including government, education, healthcare, corporate travel, and leisure travel. Supported by more than 63,000 government jobs across state, local, and federal agencies, and a combined university enrollment exceeding 68,000 students. Tallahassee experiences significant weekend uplift during FSU home football games, which regularly draws more than 70,000 attendees.
In 2024, Tallahassee ranked 12th nationally for overall economic performance and generated more than 18,000 new jobs over the past five years, placing it within the top 15% of U.S. metropolitan areas for job creation. Largest employers include Florida State University, the State of Florida, Tallahassee Memorial HealthCare, and Florida A&M University.
Backed by Roch Capital, a diversified private capital manager with a real estate portfolio spanning hospitality, office, and multifamily assets, including seven hospitality properties, and the institutional capacity to evaluate, close, and execute complex acquisitions.
The Sponsor's all-in basis of approximately $183,247 per key remains substantially below replacement cost, estimated at more than $300,000 per key for newly constructed premium select-service hotels.
To receive the full Financing Memorandum and access data-room materials, please execute the Confidentiality Agreement or contact the Hodges Ward Elliott Debt & Structured Finance team.