Acore Capital has raised $1 billion to make rescue investments in North American hotels, as lodging owners seek new and often expensive capital to bridge the latter stages of a pandemic, Bloomberg reported. In many cases, it will seek owners who have exhausted their ability to win forbearance on existing debt.
- By the numbers: Last year was the worst on record for the U.S. hospitality industry, with occupancy rates at 44%. Roughly 20% of hotel loans financed with CMBS are at least 60 days delinquent.
- Hotels offer an excellent opportunity: Whether hotel owners can hold onto their assets will depend on their ability to win more forbearance, or to find a lender to inject new capital into a property. In some cases, a hotel’s value has been too greatly impaired to warrant new investment.
- Heard on the Street: ACORE’s Warren de Haan: “The pandemic has had a disproportionate and historic impact on the lodging industry leading to unprecedented distress and liquidity issues for hotel owners. 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.” [Bloomberg+PR]