Pembroke Hospitality and the Ireland Strategic Investment Fund (ISIF) have announced a new €50 million Hotel Investment Fund (HIF) which will invest in hotels that have suffered a negative impact on their business due to the pandemic.
Pembroke, a hotel industry advisory and asset manager, and ISIF, a state development fund managed by the National Treasury Management Agency, said HIF will provide owners with bridge financing in the medium term to help them resume their activity after Covid.
It will target investments in hotels in the Republic, which are rated three stars and above and have a minimum of 25 rooms.
The HIF will provide an investment in the form of a three-year preferred stock, subordinated to senior/bank debt, with a coupon that is rolled up 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. HIF will provide facilities to hotels between €500,000 and €5 million for a period of three years, with initial applications to be made via the HIF website, HifIreland.ie.