Investor says it will loan firm $3.4 mn to buy historic hotel

SELMA, Alabama: A real estate investor says it is loaning a hotel operator $3.4 million to buy a historic hotel in Selma.
American South Real Estate Fund said April 8 that it has closed a loan with Rhaglan Hospitality to fund the purchase of the St. James Hotel.
Birmingham-based Rhaglan says it plans to operate the hotel as part of Hilton’s Tapestry Collection.
Rhaglan says the now-shuttered St. James, owned by the city of Selma, is the last surviving antebellum riverfront hotel in the Southeast. The hotel reopened in 1997, but it’s been a financial drain on the city government. A series of other purchase offers have fallen through.
The company says it will hire 40 employees. Local leaders hope the reopening will boost tourism.
Rhaglan previously redeveloped the Redmont Hotel in downtown Birmingham. AP