SAN FRANCISCO—ACORE Capital, LP, one of the largest global credit managers focused exclusively on commercial real estate lending, announced that it has raised $1 billion to launch ACORE Hospitality Partners, an investment strategy backed by a group of institutions, which is focused on providing North American hotel operators with rescue capital to navigate the ongoing COVID-19 pandemic.
AHP’s strategy is to originate and acquire structured hotel debt investments including senior and mezzanine loans, B-notes and preferred equity. AHP will 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 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.”
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.
“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.”
AHP will benefit from ACORE’s extensive experience originating and managing debt investments. Since its inception in 2015, ACORE has originated over $4.2 billion of hospitality investments. The ACORE team includes more than 80 commercial real estate finance professionals that operate out of offices in New York, Los Angeles, San Francisco and Dallas.