Stonehill Strategic Capital Eyes $500M in Hotel Financing

ATLANTA—Stonehill Strategic Capital, LLC (SSC), an affiliate of Peachtree Hotel Group II, LLC,  is looking to transact $500 million in fixed-rate permanent loans, floating-rate bridge loans, mezzanine debt, preferred equity and discounted note purchases this year.

SSC closed $25 million in loans in December and an additional $65 million is under signed application scheduled to close shortly, according to the company.

Additionally, SSC’s affiliate closed on its hotel credit opportunity fund, Stonehill Strategic Hotel Credit Opportunity Fund, which will provide the capital to meet SSC’s lending goals for 2015. 

“We exceeded our most optimistic forecasts during 2014, our first full year since inception, and set the stage for a very fruitful second year and beyond,” stated Mat Crosswy, president of SSC. “Adding a permanent-loan product is an important milestone in our company’s growth that directly complements the existing debt solutions we can provide our clients. This allows SSC to take a client through the entire life of an asset.”

Stonehill completed 19 transactions in 2014 totaling more than $150 million. Stonehill deployed capital in a variety of transactions, including bridge loans, permanent loans, mezzanine loans and preferred-equity investments.

Crosswy noted with the supply pipeline remaining close to 1% of total room demand, increasing average daily rate, and transaction activity shifting to secondary and tertiary markets, the demand for hotel financing will remain healthy for the coming year. “With supply in check and occupancy projected to reach record highs, confident owners likely will be eager to complete renovation projects and refinancing. All signs point to a strong 2015 and 2016 for the industry.”