PortfolioOriginationCredit Analysis

AI Credit Analysis

The Grand Meridian Hotel·185-room Full-Service Hotel· Miami Beach, FL 33139

Refinance + PIP$28.5M Request

DSCR

Pass

1.57x

Pro forma: 2.13x

1.25x min

LTV

Pass

65%

75% max

LTC

Pass

75%

80% max

Debt Yield

Pass

22.6%

Pro forma: 30.6%

10% min

Risk Grade

Pass

B+78/100

Investment grade

AI Risk Assessment

B+ · 78/100

Borrower Strength

92/100 · 20% wt

Experienced operator, strong track record, adequate liquidity

Property Quality

85/100 · 20% wt

Well-maintained, recent renovation, prime location

Market Fundamentals

74/100 · 20% wt

Strong demand drivers, moderate supply growth, seasonal volatility

Financial Performance

81/100 · 25% wt

Above-market RevPAR, solid DSCR, healthy debt yield

Loan Structure

68/100 · 15% wt

Conservative LTV, standard terms, PIP execution risk

Market Performance

Subject RevPAR$272.8

Comp Set$255.8

Market Avg$227.1

Seasonality

Peak(Dec-Apr)

88% / $425

Shoulder(May-Jun, Nov)

72% / $340

Trough(Jul-Oct)

61% / $275

Demand Drivers

International tourismConvention center expansionArt Basel / Ultra / F1 GPCorporate relocations to South FL

Construction Budget

Hard Costs

$19,600,000$12,740,000-35.0%

Soft Costs

$3,360,000$2,352,000-30.0%

FF&E

$2,800,000$840,000-70.0%

Contingency

$1,400,000$280,000-80.0%

Interest Reserve

$840,000$504,000-40.0%

Hard Cost/Room

$140,000

Soft Cost/Room

$24,000

FF&E/Room

$20,000

Total/Room

$200,000

Stress Test Scenarios

Scenario	Occupancy	ADR	RevPAR	NOI	DSCR
Base Case	82%	$405	$332.1	$9.9M	2.13x
Moderate Downturn (-15% RevPAR)	72%	$365	$262.8	$6.8M	1.47x
Severe Recession (-30% RevPAR)	62%	$320	$198.4	$4.2M	0.90x
2020-Style Disruption (-50% RevPAR)	38%	$280	$106.4	$1.3M	0.27x
Upside (+10% RevPAR)	85%	$425	$361.3	$11.2M	2.40x

DSCR ≥ 1.25x DSCR 1.00–1.24x DSCR < 1.00x

Interactive Scenario Builder

Real-time sensitivity analysis

RevPAR Adjustment0%

-50%0%+20%

Occupancy Adjustment0%

-40%0%+10%

Interest Rate6.25%

4.00%7.00%10.00%

Adjusted NOI

$9.93M

+0.0% vs baseline

Adjusted DSCR

5.57x

+130.4% vs baseline

Debt Service

$1.78M

at 6.25% annual rate

AI Flagged 5 Items for Review

Revenue

Pro forma ADR growth of 13.1% ($358 to $405) over 3 years assumes successful PIP completion and brand repositioning. Market-wide ADR growth has averaged 4.2% annually. Consider stress testing at 8% cumulative growth.

Field: ADR GrowthExtracted: $358 currentProjected: $405 pro forma

Expense

F&B department profit margin at 20% is below the 25-28% benchmark for full-service hotels in this market. Post-PIP concept refresh may improve this, but Year 1 margins could compress further during transition.

Field: F&B MarginExtracted: 20.0%Projected: 25.0% (pro forma)

Market

Two new hotel projects (combined 380 rooms) are in planning within 1.5 miles. Expected delivery in 2028. Current supply growth of 2.1% could accelerate. Recommend monitoring construction permits quarterly.

Field: Supply PipelineExtracted: 380 rooms plannedProjected: 2028 delivery

Borrower

Borrower liquidity of $20.6M (combined) exceeds 9-month debt service reserve ($3.1M) and PIP budget ($4.2M). Strong liquidity position supports execution risk mitigation.

Field: LiquidityExtracted: $20.6M combinedProjected: Adequate

Risk

Hurricane season exposure (Jun-Nov) coincides with trough period. Property has $2M deductible on windstorm insurance. Recommend requiring borrower to fund a $500K catastrophe reserve.

Field: InsuranceExtracted: $2M deductibleProjected: Elevated risk

T12 Actuals

Total Revenue

$24,800,000

Total Expenses

$17,360,000

NOI

$7,440,000

FF&E Reserve (4%)

$992,000

NOI After FF&E

$6,448,000

Debt Service

$4,104,000

Pro Forma — Stabilized Y3

Total Revenue

$29,760,000+20.0%

Total Expenses

$19,834,000+14.3%

NOI

$9,926,000+33.4%

FF&E Reserve (4%)

$1,190,400+20.0%

NOI After FF&E

$8,735,600+35.5%

Debt Service

$4,104,000

AI Credit Memo Preview

Click “Generate Credit Memo” to have the AI draft a complete, institutional-grade credit memo from the analyzed data above.

AI Credit Analysis · All findings require credit officer review before approval · Confidential