Crestline Hotels & Resorts has created a $300 million fund that it will use to acquire hotels and invest in properties with strategic capital partners.
This will be the first time that the third-party management company will be investing in its own properties.
“Crestline will use the fund and our management expertise to convert underperforming hotels into lucrative investments that outperform their competitive sets,” said James Carroll, Crestline’s president and CEO. “The fund has flexible investment parameters, allowing us to acquire hotels, invest in joint ventures, provide mezzanine financing, and we will consider entering into long-term leases or performance guarantees.”
The goal of these investments is to enable the company to continue the steady growth of its management portfolio. Crestline will be investing $150 million of equity and is targeting 50 percent debt for the fund.
