Electra America fund raises $500M+

Electra America Hospitality Group (EAHG), a joint venture between Electra America and AKA, has closed the Electra America Hospitality Fund I (EAHG I). The fund, launched in February 2021, exceeded its target of raising $500 million from investors.

EAHG Fund I is focused on the opportunistic acquisition of independent hotels in major gateway markets with strong growth potential, according to the company. Commitments to the fund came from both domestic and foreign institutional and high-net-worth investors.

Electra America Hospitality Group already deployed $100 million of capital in 2021 for the acquisition of seed assets, including the 194-key Hotel AKA Nomad in New York City; the 178-key Hotel AKA Alexandria in the heart of Old Town Alexandria, VA; and the 201-key Hotel AKA Brickell (pictured above) in Miami’s financial district.

“Electra America Hospitality Group remains highly focused on exceptionally well-located assets in gateway markets where distress or another combination of factors has created an opportunity to acquire a unique hotel asset at a significant discount,” said Russ Urban, CEO, EAHG. “Our best-in-class operating partner, AKA, the leader in luxury, multi-night stay lodging, will then transform these properties into the best-in-class product in their respective submarkets.”

Joseph Lubeck, chairman, EAHG, added, “Our ability to raise more than $500 million for this fund speaks to investors’ long-term confidence in the U.S. hospitality market, and the strength of Electra/AKA’s business strategy.”

EAHG continues to source opportunities in other major markets including Southeastern Florida, Southern California, Boston, Austin, Nashville and London, along with additional properties in Miami, New York City and Washington, DC.