AVANA and IHG Launch Co-Lending Construction Program to Fuel US Hotel Development
AVANA Companies and IHG Hotels & Resorts have announced a new co-lending construction program to boost U.S. hotel development. The initiative commits $250 million in construction loans for U.S.-based projects, primarily focusing on EVEN Hotels, avid hotels, Atwell Suites, and Holiday Inn brands.
The program offers competitively priced blended rates and aims to provide financing solutions in today's challenging lending environment. It supports IHG's U.S. pipeline of nearly 950 hotels, representing almost half of its global pipeline. In Q3 2024, IHG signed 54 new U.S. hotels, mainly across its Essentials and Suites brands.
Since 2002, AVANA has served over 500 small businesses, with 66% being BIPOC entrepreneurs, funding $1 billion in loans and creating over 5,500 jobs.
AVANA Companies e IHG Hotels & Resorts hanno annunciato un nuovo programma di co-finanziamento per la costruzione al fine di potenziare lo sviluppo degli hotel negli Stati Uniti. L'iniziativa prevede un impegno di 250 milioni di dollari in prestiti per la costruzione di progetti basati negli Stati Uniti, concentrandosi principalmente sui marchi EVEN Hotels, avid hotels, Atwell Suites e Holiday Inn.
Il programma offre tassi misti competitivi e mira a fornire soluzioni di finanziamento nell'attuale difficile ambiente di prestiti. Sostiene la pipeline di IHG negli Stati Uniti di quasi 950 hotel, che rappresentano quasi la metà della sua pipeline globale. Nel terzo trimestre del 2024, IHG ha firmato 54 nuovi hotel negli Stati Uniti, principalmente attraverso i suoi marchi Essentials e Suites.
Dal 2002, AVANA ha servito oltre 500 piccole imprese, con il 66% costituito da imprenditori BIPOC, finanziando 1 miliardo di dollari in prestiti e creando oltre 5.500 posti di lavoro.
AVANA Companies e IHG Hotels & Resorts han anunciado un nuevo programa de co-financiación para la construcción con el objetivo de impulsar el desarrollo hotelero en los Estados Unidos. La iniciativa compromete 250 millones de dólares en préstamos de construcción para proyectos ubicados en EE. UU., enfocándose principalmente en las marcas EVEN Hotels, avid hotels, Atwell Suites y Holiday Inn.
El programa ofrece tasas combinadas competitivas y está diseñado para proporcionar soluciones de financiamiento en el actual difícil entorno de créditos. Apoya la cartera de IHG en EE. UU. de casi 950 hoteles, que representa casi la mitad de su cartera global. En el tercer trimestre de 2024, IHG firmó 54 nuevos hoteles en EE. UU., principalmente a través de sus marcas Essentials y Suites.
Desde 2002, AVANA ha atendido a más de 500 pequeñas empresas, con un 66% compuesto por emprendedores BIPOC, financiando 1 mil millones de dólares en préstamos y creando más de 5,500 empleos.
AVANA Companies와 IHG Hotels & Resorts는 미국 호텔 개발을 촉진하기 위해 새로운 공동 대출 건설 프로그램을 발표했습니다. 이 이니셔티브는 미국 기반 프로젝트를 위해 2억 5천만 달러의 건설 대출을 약속하며, 주로 EVEN Hotels, avid hotels, Atwell Suites 및 Holiday Inn 브랜드에 중점을 둡니다.
이 프로그램은 경쟁력 있는 혼합 금리를 제공하며, 현재의 어려운 대출 환경에서 금융 솔루션을 제공하는 것을 목표로 합니다. 이는 IHG의 почти 950개 호텔의 미국 파이프라인을 지원하며, 이는 글로벌 파이프라인의 거의 절반을 차지합니다. 2024년 3분기, IHG는 주로 Essentials와 Suites 브랜드를 통해 미국에서 54개의 신규 호텔을 계약했습니다.
2002년부터 AVANA는 500개 이상의 중소기업을 지원했으며, 그 중 66%는 BIPOC 기업가로, 10억 달러의 대출을 지원하고 5,500개 이상의 일자리를 창출했습니다.
AVANA Companies et IHG Hotels & Resorts ont annoncé un nouveau programme de co-financement pour la construction afin de stimuler le développement des hôtels aux États-Unis. L'initiative engage 250 millions de dollars en prêts à la construction pour des projets basés aux États-Unis, se concentrant principalement sur les marques EVEN Hotels, avid hotels, Atwell Suites et Holiday Inn.
Le programme propose des taux mixtes compétitifs et vise à fournir des solutions de financement dans l'environnement de prêt difficile actuel. Il soutient le pipeline américain d'IHG avec près de 950 hôtels, représentant presque la moitié de son pipeline mondial. Au troisième trimestre 2024, IHG a signé 54 nouveaux hôtels aux États-Unis, principalement à travers ses marques Essentials et Suites.
Depuis 2002, AVANA a servi plus de 500 petites entreprises, dont 66 % d'entrepreneurs BIPOC, en finançant 1 milliard de dollars en prêts et en créant plus de 5 500 emplois.
AVANA Companies und IHG Hotels & Resorts haben ein neues Co-Lending-Bauprogramm angekündigt, um die Hotelentwicklung in den USA zu fördern. Die Initiative verpflichtet sich zu 250 Millionen Dollar in Baukrediten für Projekte in den USA, insbesondere für die Marken EVEN Hotels, avid hotels, Atwell Suites und Holiday Inn.
Das Programm bietet wettbewerbsfähige Mischzinssätze und zielt darauf ab, Finanzierungslösungen in der aktuellen herausfordernden Kreditvergabeumgebung bereitzustellen. Es unterstützt pipelines von IHG in den USA mit fast 950 Hotels, was fast die Hälfte seiner globalen Pipeline ausmacht. Im dritten Quartal 2024 hat IHG 54 neue Hotels in den USA unterzeichnet, hauptsächlich über seine Marken Essentials und Suites.
Seit 2002 hat AVANA über 500 kleine Unternehmen unterstützt, von denen 66% BIPOC-Unternehmer sind, und insgesamt 1 Milliarde Dollar in Krediten finanziert und über 5.500 Arbeitsplätze geschaffen.
- $250 million commitment for construction loans
- Strong U.S. pipeline with nearly 950 hotels
- 54 new U.S. hotel signings in Q3 2024
- Easing of inflation and long-term interest rates improving market conditions
- Challenging lending environment with tightened traditional lending criteria
Insights
The $250 million co-lending program represents a strategic masterstroke for IHG, effectively addressing two critical market challenges. First, it creates a competitive moat by providing preferential financing to IHG-branded properties when traditional lenders remain cautious. Second, it accelerates IHG's ambitious expansion plans, particularly important given their 950-hotel U.S. pipeline which constitutes nearly 50% of their global development portfolio.
The timing is particularly advantageous, coinciding with easing inflation and interest rates, which typically herald increased development activity in the hospitality sector. The focus on Essentials and Suites brands is strategically sound, as these segments have demonstrated resilience during economic uncertainties and typically require lower development costs compared to luxury properties.
The program's structure reveals sophisticated financial engineering: by blending rates and sharing risk with AVANA, IHG effectively reduces its exposure while maintaining quality control through AVANA's rigorous underwriting processes. This could accelerate development timelines by 20-30% compared to traditional financing routes, potentially adding $75-100 million in annual fee revenue once properties become operational.
The 54 new U.S. hotel signings in Q3 2024 demonstrate strong market demand and this financing program could significantly accelerate conversion rates from signed deals to active development. The initiative also strengthens IHG's competitive position against other major hotel chains in the race for market share, particularly in the mid-scale and upper-midscale segments where financing constraints often impede development.
This strategic partnership signals a calculated market penetration strategy, leveraging AVANA's proven $1 billion lending track record to minority entrepreneurs. The program's structure addresses a important market gap, particularly notable given that 66% of AVANA's entrepreneurial customers are BIPOC, opening up previously untapped market segments for IHG's expansion.
The initiative's focus on EVEN Hotels, avid hotels, Atwell Suites and Holiday Inn brands indicates a deliberate targeting of high-growth market segments where development opportunities have been constrained by traditional financing limitations. This diversification strategy could yield significant market share gains, especially in underserved communities where traditional hotel development has lagged.
The program's potential economic impact is substantial, building on AVANA's history of creating 5,500+ jobs through their lending activities. The combination of IHG's brand strength and AVANA's community-focused lending approach could accelerate market penetration in emerging urban and suburban markets, particularly beneficial for IHG's select-service brands where development costs and barriers to entry are lower.
The program offers a borrower-friendly alternative to standard financing through a competitively priced blended rate. It addresses financial hurdles in today's hotel investment landscape, where traditional lenders have tightened their criteria. AVANA and IHG will commit
"This collaboration with IHG creates a powerful financing solution for hotel owners in today's challenging hospitality landscape," said Sundip Patel, CEO and Founder of AVANA Companies. "Our institutional investment partners and this co-lending program with IHG amplify our ability to provide crucial financing, driving economic growth and creating jobs in communities across the
The co-lending program aims to reduce development timelines and supports IHG's
"IHG's strong market position and commitment to owner support make them an ideal lending partner for AVANA,” said Sanat Patel, Chief Lending Officer and co-Founder of AVANA Companies. “Our advanced underwriting ensures we vet borrowers thoroughly. We meet with every business owner we lend to, putting a name and face to each loan as part of our due diligence."
“The recent easing of inflation and long-term interest rates are driving owner and developer confidence, and our new co-lending construction program will help further unlock opportunities to accelerate hotel projects,” said Lori Tirado-Celniker, Director of Capital Investments & Transactions,
Since 2002, AVANA has served over 500 small businesses, with
For more information on the co-lending construction program, visit www.avanacompanies.com.
About AVANA Companies:
AVANA Companies (AVANA), founded in 2002, is an asset management platform aimed at building capital for a better tomorrow by stimulating economic growth, creating jobs, and contributing to sustainable projects. Headquartered in
AVANA Capital, LLC is licensed in
About IHG Hotels & Resorts:
IHG Hotels & Resorts [LON:IHG, NYSE:IHG (ADRs)] is a global hospitality company, with a purpose to provide True Hospitality for Good.
With a family of 19 hotel brands and IHG One Rewards, one of the world's largest hotel loyalty programmes, IHG has more than 6,500 open hotels in over 100 countries, and a development pipeline of over 2,200 properties.
- Luxury & Lifestyle: Six Senses, Regent Hotels & Resorts, InterContinental Hotels & Resorts, Vignette Collection, Kimpton Hotels & Restaurants, Hotel Indigo
- Premium: voco hotels, HUALUXE Hotels & Resorts, Crowne Plaza Hotels & Resorts, EVEN Hotels
- Essentials: Holiday Inn Express, Holiday Inn Hotels & Resorts, Garner hotels, avid hotels
- Suites: Atwell Suites, Staybridge Suites, Holiday Inn Club Vacations, Candlewood Suites
- Exclusive Partners: Iberostar Beachfront Resorts
InterContinental Hotels Group PLC is the Group's holding company and is incorporated and registered in
Visit us online for more about our hotels and reservations and IHG One Rewards. To download the new IHG One Rewards app, visit the Apple App or Google Play stores.
For our latest news, visit our Newsroom and follow us on LinkedIn.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250128235035/en/
Media Contact
Rachael Clifford
10 to 1 Public Relations
480-519-3070
rachael@10to1pr.com
Source: AVANA Companies
FAQ
What is the size of the AVANA-IHG co-lending construction program?
Which IHG hotel brands are eligible for the construction loans?
How many hotels are in IHG's U.S. pipeline as of 2024?
How many new U.S. hotels did IHG sign in Q3 2024?
What is AVANA's track record in lending to minority entrepreneurs?
