Strategic Capital Launches Hospitality Financing Program
SCS to fund up to $130 million in targeted markets for acquisitions, repositionings or restructuring
New York, NY - November 9, 2010 - In response to a growing demand from distressed hotel owners seeking financing options, Strategic Capital Solutions (SCS) has formed a dedicated Hospitality Financing Program aimed at existing and newly constructed hotels in targeted markets throughout the U.S., Western Europe and Caribbean. Seeking to fund up to $130 million of debt and equity investments in the next 12 months, SCS announced it would consider senior, mezzanine, preferred equity and equity investments as well as sale/leaseback transactions.
“Access to capital through traditional lending institutions is virtually unavailable for hotel owners or buyers, and where available, it's at very low leverages and for stabilized properties,” said Edward O. Mehrfar, Senior Managing Director at SCS. “There is a unique opportunity within the hospitality industry as the economic recovery progresses and travelers return to the marketplace.”
SCS plans to pursue sponsors who need to re-finance existing debt, require a bridge loan as part of a recapitalization or property improvement program, or seek to acquire hotel properties or discounted paper from existing lenders.
SCS believes its roll-out of the hospitality program is very well timed. According to Mehrfar, “The hotel industry, which just went through a severe and prolonged downturn, is beginning to show signs of recovery. We expect 2011 to be an active year for the hospitality industry, but certain markets are poised to rebound stronger than others.”
Recent forecasts reveal an upward trend for the sector. Smith Travel Research is currently forecasting a REVPAR gain of 3% in 2010 and a better than 6% REVPAR gain in 2011. Following almost 40% declines for the 2007 to 2009 period, Colliers PKF is predicting significant increases in net operating incomes for this year.
As the sector rebounds, Mehrfar believes more quality deals will become available. “Banks are beginning to capitulate and are willing in the current environment to move assets off their books. As a result, higher quality opportunities in the hospitality sector are becoming available. SCS' depth of experience and flexible capital structures enables us to develop innovative financial solutions for the most complicated transactions, fulfilling a serious need for this sector,” he added.
About Strategic Capital Solutions
SCS is a recognized leader in providing innovative financing solutions for real estate projects and commercial transactions worldwide. With offices in New York and London, SCS has a diverse team of experts, including attorneys, investment bankers and analysts. SCS provides its clients with the experience necessary to handle any transaction from the simple to the most complex. For more information, visit www.strategiccapitalsolutions.com.
Marriott International, Inc. (NASDAQ: MAR) is a global leading lodging company based in Bethesda,Maryland, USA, with more than 4,200 properties in 80 countries and territories. Marriott International reported revenues of nearly $14 billion in fiscal year 2014. The company operates and franchises hotels and licenses vacation ownership resorts under 19 brands, including: The Ritz-Carlton®, BVlgari®, EDITION®, JW Marriott®, Autograph Collection® Hotels, Renaissance® Hotels, Marriott Hotels®, Delta Hotels and Resorts®, Marriott Executive Apartments®, Marriott Vacation Club®, Gaylord Hotels®, AC Hotels by Marriott®, Courtyard®, Residence Inn®, SpringHill Suites®, Fairfield Inn & Suites®, TownePlace Suites®, Protea Hotels® and MoxyHotels®. Marriott has been consistently recognized as a top employer and for its superior business ethics. The company also manages the award-winning guest loyalty program, Marriott Rewards® and The Ritz-Carlton Rewards® program, which together surpass 50 million members. For more information or reservations, please visit our website at 
