Stonehill, a commercial real estate direct lender, has deployed $612 million across 64 transactions year-to-date, and expects to deploy approximately $1.25 billion during 2021, increasing 74% from 2020.
The transactions include first mortgage permanent and construction loans; bridge and mezzanine loans; and hotel investments. The company also has an affiliate, Stonehill PACE, that offers commercial property assessed clean energy (CPACE) financing.
A survey conducted in late 2020 by the American Hotel & Lodging Association (AHLA) found that half of hotel owners said they were in danger of foreclosure by their commercial real estate debt lenders. Fortunately, government support and ongoing help from banks have kept hotel owners from suffering even steeper losses. However, certain of those supports are coming to an end.
“The tide is turning, and we have experienced an increase in activity from hotel owners and investors as forbearance periods are ending and traditional lenders becoming less flexible than they were a year ago,” said Mat Crosswy, principal, Stonehill. “With the industry in recovery mode, hotel owners are looking for financing options to ensure their properties and portfolios have an optimal capital stack to see them through to a normalized operating environment.”
Stonehill as a senior lender originates loans across the capital structure for acquisitions, construction, recapitalizations, refinancing and renovations. “Stonehill prides itself on working with owners to find financial solutions that work for all parties involved,” Crosswy said.