Interstate Hotels & Resorts announces alliance with Hospitality Funding
Interstate Hotels & Resorts, an Arlington-based global hotel management company, has formed an alliance with Palm Beach, Fla.-based Hospitality Funding to assist Interstate’s clients with capital market needs on hotel projects.
According to Interstate, Hospitality Funding works with seasoned lenders on Wall Street, which makes the company a good match for Interstate.
Interstate and Hospitality Funding have worked together on various debt and equity sources since 2010 and have successfully executed numerous projects. Interstate said the partnership could assist hotel owners with needs in acquisition financing, renovation financing, construction financing, long-term financing and joint venture equity.
“Interstate’s partnership with Hospitality Funding offers true added value to Interstate’s existing arsenal of services to our hotel owners, directly translating to their success,” Leslie Ng, Interstate’s chief investment officer, said in a statement.
Interstate said the current momentum in the hospitality sector is driving an influx of capital, and investors and credit markets are focused on the luxury, full-service and select-service hotel markets. The current conditions present an opportune time to consider financing, and Interstate’s partnership with Hospitality Funding will help owners increase their bottom line.
“Having worked with Interstate and its clients for the last five years, Hospitality Funding is excited to formally partner to assist the company’s hotel owners with financing needs,” said Scott Silver, chairman of Hospitality Funding Inc.
Hospitality Funding is headquartered in Palm Beach with offices in New York and Chicago, and is led by investment bankers Silver and Steven Fischler. In addition to debt, the firm has the ability to source equity for various types of hotel projects, including new construction projects. Hospitality Funding says its has executed more than $2 billion in both debt and equity funding.
Interstate is a wholly owned subsidiary of a 50/50 joint venture between subsidiaries of Thayer Lodging Group and Jin Jiang Hotels, a U.S.-based global hotel management company that operates branded full- and select-service hotels and resorts, convention centers and independent hotels worldwide.
As of November, Interstate and its affiliates managed nearly 430 hotels with over 76,500 rooms in North America, the UK, Europe, Russia and the CIS, and China, including ownership interest in 32 hotels.
In addition, Interstate has executed agreements to manage 37 hotels with more than 5,100 rooms under construction or development throughout the world.