Hotel Management recently highlighted the growing role of C-PACE (Commercial Property Assessed Clean Energy) financing in the hospitality sector, with insights from Jared Schlosser, head of credit originations and C-PACE at Peachtree Group.
Schlosser explained that C-PACE has evolved from an early-2010s energy-efficiency initiative into a significant capital source for hotel development and renovation. The financing provides long-term, fixed-rate funding — typically 25–30 years — for energy-related components affixed to a property, such as HVAC systems, lighting, roofing, windows and mechanical infrastructure.
“There are certain line items that are PACE-eligible that can be found in any hotel you’re building or renovating,” Schlosser said. “Those can qualify for long term fixed rate financing on top of the capital stack. The easiest way to explain it is it is for anything besides FF&E.”
Unlike traditional debt, C-PACE is repaid through a property tax assessment, offering seasonal flexibility that can be especially beneficial for hotel owners. Schlosser also noted that new-build hotels typically qualify automatically when constructed to current code standards, and he emphasized that the program is more mainstream than ever — particularly within hospitality.
“I think it is going to be a mainstay moving forward,” Schlosser said. “It is more mainstream than it has ever been and it will continue to be this way, particularly in the hospitality side.”
As traditional bank lending remains constrained, Peachtree Group continues to see increased demand for C-PACE as a strategic tool within the hotel capital stack.
