ACORE Capital has formed an investment strategy backed by a group of institutions targeting rescue capital for North American hotel operators to navigate the ongoing health crisis and subsequent debilitating blow to the hospitality industry. The initiative culminated on Tuesday with the company announcing that it raised $1 billion to launch ACORE Hospitality Partners (AHP), a new strategy focused on originating and acquiring structured hotel debt investments.
“Hotel owners and operators are draining their bank accounts, they are draining their reserve accounts, and they need to come up with additional capital to pay their lenders, make payroll, and in addition to that, put other capital into their hotels,” Warren de Haan, an ACORE co-founder said. “At ACORE, we are very well known as a trusted lender and partner to our hotel borrowers, and we want to help them get to the other side and, at the same time, make a good, adjusted return for our investments.”
AHP will provide senior and mezzanine loans, B-notes and preferred equity investments. The investments will range across the hotel sector from high-end, luxury resorts to smaller, limited-service hotels. To obtain a quote for an ACORE rescue loan, please contact Michael Sneden (firstname.lastname@example.org) or Gary Unkel (email@example.com).