ATLANTA—Stonehill Strategic Capital, LLC (SSC), an affiliate of Peachtree Hotel Group, has financed 11 hotel projects over the last 75 days with a total debt capitalization of nearly $200 million.
Year-to-date, the company has capitalized more than $350 million in various forms of financing, and the company remains on track to execute more than $500 million in projects this year.
“Summer is traditionally a slower season, but we have experienced one of the busiest quarters since our inception,” said Mat Crosswy, president of SSC. “We have continued to efficiently deploy our fund, which was launched at the end of last year, using targeted marketing coupled with our company’s reputation to execute in a timely fashion while honoring the terms and structure outlined with our borrowers.”
He added, “The last 75 days demonstrate the depth and flexibility within our platform to participate at different levels within the capital stack while providing structures to meet borrower’s needs. SSC has successfully worked with owners to provide financing from permanent financing to bridge loans to preferred equity investments. Our coffers remain full, and we are poised to continue providing the right type of financing for the best projects that align with our strategy.”
Michael Harper, VP, SSC, stated, “With the hotel industry continuing to outperform even the loftiest expectations, hoteliers are reinvesting in their portfolios. As an industry, we appear to have learned from past cycles where rampant construction spelled eventual losses for everyone.”
Harper added, “We view this as a win-win for both hotel owners and guests. The industry does not appear to be in any immediate or near-term danger of overbuilding and flooding the market with new and sometimes unnecessary product. Consumers will benefit from rejuvenated hotels as owners realize that product improvements are necessary to attract an ever-evolving guest base.”