PACE Equity will be speaking at one of the top hotel industry events in the world, The Lodging Conference, September 24-27.
We've pioneered a new and innovative funding solution for hospitality developments and renovations across the United States. We've completed 150 projects nationwide, and our experience breaking new ground earned us an invitation to speak at the conference. We'll be speaking to hotel developers and owners on how they can apply our innovative capital to their own projects.
How Hotel Developers & Owners Use PACE Equity Financing
Hotels are uniquely positioned to use PACE Equity's financing to benefit their stack, replacing more expensive capital (such as mezzanine, EB5, or preferred equity) and producing improved returns. They're also able to replace old equipment, create positive cash flow, and complete PIPs using PACE Equity.
A large midwest Marriott flag hotel was the first new construction project to use PACE in its capital stack, and chose PACE Equity to assist with all the requirements as well. Incorporating PACE Equity boosted project returns by more than 25%.
In another recent closing, Hotel Retlaw's owners were able to secure a number of elements in the capital stack:
- historic tax credits
- TIF financing from the hotel's city
- a bank construction loan
- a grant from WHEDA
However, they were still seeking additional capital to complete their stack. PACE Equity worked with these sources, providing an additional 11% of the capital stack for this historic renovation project.
Innovative repayment options are also available for hospitality and aren't available for other asset classes. Hotel owners are able to pass some of the repayments costs through to overnight guests as part of the room fee, lowering the cost of the capital even further. Learn more about this concept that PACE Equity pioneered; contact us today.
This Is What We Do
We're the pioneer in PACE hospitality projects and we pioneered the first new construction project in hospitality using our proprietary process. We have long term, fixed rate, non-recourse capital for hospitality projects, be it new construction or redevelopment. We're currently funding substantial capital into hotel new construction and renovation projects nationwide.
Learn about other hospitality projects we have completed on our resources page or by clicking the case study below.