Commercial real estate finance company Acore Capital has raised $1 billion to provide rescue capital to North American hotel operators.
The company has launched Acore Hospitality Partners (AHP), an investment strategy backed by a group of institutions, to originate and acquire structured hotel debt investments including senior and mezzanine loans, B-notes and preferred equity.
“The pandemic has had a disproportionate and historic impact on the lodging industry leading to unprecedented distress and liquidity issues for hotel owners,” said Warren de Haan, Managing Partner at Acore.
“We formed Acore Hospitality Partners to solve this liquidity crisis by providing hotel owners with the capital they require to continue operations and keep people working,” he added.
AHP plans to invest across the entire spectrum of hotel types, ranging from high-end luxury resorts to smaller limited-service hotels, focusing on assets in high-barrier markets and compelling rebound characteristics.
”The capital that AHP will provide comes at a time when many experienced hospitality borrowers are suffering from dwindling cash reserves and significant current operating expense obligations. This has put intense pressure on hotel owners and their lenders to seek viable solutions to this dilemma. By serving as a reliable source of funding, Acore is positioned to meet this need and support the hospitality industry’s recovery,” said the company in a statement.
“We have been active hospitality lenders for more than 25 years and enjoy longstanding relationships with an extensive list of hotel owners,” said Boyd Fellows, Managing Partner at Acore. “It’s been devastating to witness how the pandemic has impacted their businesses. We are confident it’s possible to lend support while still meeting our investment objectives.”