What's Happening?
Access Point Financial (APF) has acquired $98 million in risk retention bonds as part of a $653 million refinancing deal for a 15-hotel portfolio owned by Atrium Holding Company. The refinancing, led by Goldman Sachs, involves hotels across 12 states, including properties under brands such as Embassy Suites by Hilton, Hilton, Renaissance, Sheraton, Residence Inns by Marriott, and Courtyards by Marriott. APF's acquisition includes the most subordinate and first-loss 15% of the refinancing loan.
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Why It's Important?
This acquisition by Access Point Financial highlights the firm's strategic focus on expanding its presence in the hospitality sector. By investing in risk retention bonds, APF is positioning itself to benefit from the potential growth and renovation of these hotel properties. The $68 million planned investment in renovations could enhance the value and competitiveness of the portfolio, potentially leading to increased revenue and occupancy rates. This move underscores the importance of real estate private credit firms in facilitating large-scale refinancing and investment in the hospitality industry.
What's Next?
Following this acquisition, Access Point Financial may continue to seek similar opportunities to deploy capital in the hospitality sector. The planned renovations across the hotel portfolio could lead to improved facilities and services, attracting more guests and boosting profitability. As the hospitality industry recovers from recent economic challenges, APF's strategic investments may play a crucial role in supporting growth and innovation within the sector.
