London, United Kingdom — August 14, 2023
In short: A new financing solution for hotel owners is launched to navigate higher-for-longer interest rates.
Financing in a Higher-for-Longer World: How Hotel Owners Can Still Close Deals
Hospitality Finance Group Introduces New Deal Structuring Program
Hospitality Finance Group has unveiled a specialized financing program designed to assist hotel owners in securing capital despite rising interest rates. According to the company, the program focuses on optimizing loan structures and enhancing asset narratives to improve Net Operating Income (NOI) projections. Hospitality Finance Group emphasizes that the solution is tailored for mid-sized hotel portfolios, requiring a minimum of 20 properties and a minimum NOI of $10 million annually. The program is set to launch globally in Q4 2023, with initial rollout in North America and Europe.
Key Details
- Program Name: Hospitality Finance Group’s “Adaptive Capital Stack Solution”
- Scope: Mid-sized hotel portfolios (≥20 properties) with ≥$10M NOI
- Timeline: Global launch in Q4 2023, starting with North America and Europe
- Benefit: Enhanced NOI projections through optimized capital structures
What Travel Professionals Should Know
TMCs managing hotel portfolios in Europe and North America should be aware that the launch of Hospitality Finance Group’s Adaptive Capital Stack Solution presents a new opportunity for hotel owners to secure financing under current higher-for-longer interest rate conditions. This program specifically targets portfolios with at least 20 properties and a minimum NOI of $10 million, offering a structured approach to optimizing loan terms and improving NOI projections. Travel trade professionals should consider engaging with Hospitality Finance Group to explore how this solution can be applied to their clients’ hotel portfolios, potentially facilitating smoother deal closures in a challenging financing environment.
Frequently Asked Questions
What is the Adaptive Capital Stack Solution?
A financing program by Hospitality Finance Group aimed at optimizing loan structures and enhancing asset narratives for mid-sized hotel portfolios to improve NOI projections.
Which travel trade segments does this affect?
This solution primarily impacts TMCs and hotel owners managing portfolios of 20 or more properties with an annual NOI of at least $10 million, particularly those in Europe and North America.
When does this take effect?
The program is set to launch globally in Q4 2023, with initial operations beginning in North America and Europe.
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