Avatar Financial Group LLC has originated a $6.45 million bridge loan to support the acquisition of Hotel Providence, an 80-room boutique hotel in Downtown Providence, RI. The financing is structured as a two-year, first-lien loan and was closed at 63% loan-to-value, providing short-term capital while the new owner executes its plan for the property.
The loan proceeds are being used to facilitate the purchase of the historic hotel, which operates as an independent property after losing its prior brand flag. Located at 139 Mathewson Street, the asset is positioned in Providence’s Entertainment District and offers the sponsor an opportunity to re-establish performance following a period of operational disruption.
Hotel Providence has been functioning without a brand affiliation since early 2025, when its former Wyndham flag was discontinued. The previous ownership group had intended to reposition the property but did not complete that effort. As occupancy weakened in the wake of the flag removal and halted repositioning, the hotel’s fundamentals declined, creating an opening for a new sponsor to acquire the asset.
The buyer, described as an experienced hotel owner and operator with an established presence in the Providence market, plans to improve the property in phases. According to Avatar president and co-founder T.R. Hazelrigg IV, the combination of a lapsed flag, lower occupancy and an unfinished repositioning brought pricing to a level that made the deal achievable for a local operator. Hazelrigg noted that the new sponsor now has the flexibility to select a brand on its own timeline rather than aligning with a prior owner’s repositioning strategy.
The property’s history dates back to 1882, when it opened as the Westminster Hotel. Its location within the Entertainment District and Downtown Providence positions it near demand drivers that the new sponsor aims to better capture once the phased improvement plan is underway. The bridge structure gives the owner a defined window to stabilize operations, determine an optimal brand strategy and enhance the hotel’s performance before pursuing a longer-term capital solution.
The transaction underscores continued lender interest in well-located, historically significant hospitality assets where operational missteps or incomplete business plans have depressed occupancy. By providing senior bridge capital at moderate leverage, Avatar Financial Group is enabling a new sponsor to rework the asset’s positioning and branding with the goal of returning the hotel to stronger occupancy levels and a more sustainable operating profile.
