UK: Maslow Capital, a specialist provider of real estate development finance, has launched a lending service for the hotel sector.
This is Maslow’s latest sector expansion, adding to the dedicated lending divisions that were formed for both Purpose-Built Student Accommodation (“PBSA”) and industrial assets in 2017 and 2018 respectively.
Maslow Capital’s new hotel development funding is the latest step in its plans to expand into new markets and diversify its existing portfolio. The firm intends to deliver bespoke lending facilities for developers of hotels across the UK, in areas that demonstrate favourable demand and supply imbalances.
Maslow’s move into this sector aims to “support developers with its unconstrained balance sheet whilst using its knowledge of the development process to structure and deliver lending solutions that meet project specific requirements”.
Maslow will look to back experienced developers with good track records who are delivering well located schemes in cities where there is a significant undersupply of beds, with strong local economic fundamentals underpinning their business plans.
Ellis Sher, CEO and co-founder of Maslow Capital, said: “Notwithstanding the pipeline of circa 18,000 bedrooms coming to the market in 2020, we have identified areas of the UK where the stock is tired and or where the occupancy rates suggest that demand is exceeding supply. Our research also indicates an increase in international visitors which is set to increase by circa 13% to 44 million by 2030. Given this macro trend along with our appetite to back income producing assets we are looking to allocate significant capital to this sector.”