Quality Inn Gallipolis Sold Amid Ohio River Valley Growth
Quality Inn Gallipolis changes hands as Ohio River Valley investment fuels lodging demand, with financing arranged by Peachtree Group.
For hoteliers looking to make deals, the capital is there, but it’s possible the best options available to them look different than what they’ve used before.
Traditional lending sources for hotel owners and developers are still around, but may be fewer in number or have restrictions on how much exposure they’re allowed to hospitality businesses at any one time.
A group of executives at the NYU International Hospitality Investment Forum outlined the alternative sources of capital that have taken up a larger share of the market as a result, including foreign investment and loans for so-called clean energy projects.
The EB-5 Immigrant Investor Program allows foreign investors to put capital toward a fund that lends out money to development projects that create at least 10 jobs in local markets. In return for investing a required amount of money, investors will qualify for lawful permanent resident status.
Jared Schlosser, head of originations and C-PACE, credit, at investment management firm Peachtree Group, said in these cases, his company uses EB-5 as tax leverage to make a loan, if the project is in a rural area. That means Peachtree takes on the raise-risk itself.
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