C-PACE For Hotels
Sustainable Financing Solutions for Owners and Developers
With many benefits over traditional capital solutions, C-PACE is a valuable financing tool for hospitality.
Related Transactions Highlight Advantages of C-PACE for Senior Housing Operators and Developers
PACE Eligible Improvements
$33.7 Million | Refinance
Autograph Collection, Chicago, IL
$23.4 Million | Repositioning
Hyatt Centric, Sacramento, CA
$13.5 Million | New Construction
Hampton Inn & Suites, Rancho Cucamonga, CA
$5.45 Million | New Construction
Microtel by Wyndham, Gambrills, MD
$1.9 Million | New Construction
AC Marriott Hotel, St. Louis, MO
$4.64 Million | New Construction
C-PACE has conclusive benefits for hotel construction & refinance
Hospitality is utilizing C-PACE as a cost-effective solution for construction financing, recapitalizing after development, or recapturing CAPEX. Non-recourse and low-cost, hoteliers and developers are embracing C-PACE as the #1 source of financing to complete the capital stack and to fund construction.
New construction & refinance
Non-recourse with lower cost than other sources of capital boosts IRR with ability to extinguish construction debt within 3 years of completion with no required financial or operating covenants
Pass-through costs
May be treated same as other property taxes, with pass-through not impacting rack rate
PIP Finance
Significant portions of a PIP can be financed for PTACs, elevator modernization, HVAC, generators, solar, or EV chargers
Immediately cash flow positive
Energy efficient upgrades typically yield net positive cash flow as long self-amortizing terms smooth out impact to OPEX.
Release CAPEX Reserves
C-PACE may be used to finance required maintenance as well as strategic improvements to raise asset quality
Increase ROI
100% financing with deferred start of repayment until utility savings accrue and owner realizes incentives increases ROI and available capital