Pembroke Hospitality and the Ireland Strategic Investment Fund (ISIF) have announced a €50 million commitment to a new Hotel Investment Fund (HIF). The fund is created to invest in hotels whose business has been negatively impacted by the COVID-19 pandemic.
The HIF provides hotel owners with medium-term bridge financing to enable their business to recover and grow after COVID-19. It will target investment in hotels in the Republic of Ireland that are rated three stars and above and have a minimum of 25 rooms.
The HIF will provide investment in the form of three-year preferred stock (subordinated to senior/bank debt) with a coupon that accrues until redemption at the end of the term. Pembroke Hospitality will manage and execute the fund in partnership with BVP Investments.
The fund will invest in hotels that have a viable growth plan but are unable to raise funds from banks or alternative lenders. The HIF will provide facilities to hotels between 0.5 and 5.0 million Euros, for a period of three years. The capital deployed from the fund will help hoteliers overcome the challenges faced as a result of the COVID-19 disruption and get back on a positive trajectory.
Statement from the Director of Pembroke Hospitality
Mark Lynch, Director of Pembroke Hospitality, said: “The Hotel Investment Fund is a viable financing solution for hotels in need of financial restructuring. The fund will offer borrowers a differentiated capital solution with speed of response and access to decision makers, certainty of execution and continuity of relationship management throughout the duration of the financing.
ISIF Director Statement
Nick Ashmore, Director of ISIF, said: “ISIF’s Pandemic Stabilization and Recovery Fund is playing an important role in supporting viable Irish businesses in sectors that have been hit hard by the pandemic and helping them to recover and grow. This investment is further proof of that. of our support for Ireland’s tourism, hospitality and leisure sectors, which play such an important role in attracting visitors to destinations across Ireland and supporting jobs and businesses. It is an excellent example of ISIF’s unique ‘double bottom line’ mandate of investing for commercial return in projects and businesses that support economic activity and employment in Ireland.”
The €50 million fund will invest in hotels that need support with working capital and cash flow, capital expenditure as well as financing for green and environmentally friendly investments.
Initial inquiries can be made via HIFIreland.ie.
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