Shaner Hotel Group has formed a hospitality finance company primarily targeting small- to mid-sized hotels.
Shaner Hospitality Finance will use a $100 million initial capitalization from SHG and affiliates and by Almanac Realty Securities VI in the new venture.
Almanac is an investment vehicle managed by New York-based Almanac Realty Investors, according to a Shaner company news release Monday.
Shaner Hotel Group owns and operates 40 hotels, including properties as far west as Edina, Minn., and south to Florida, but with most of the properties in the Northeast. It also has a property in Barga, Italy, according to the company portfolio.
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Locally, Shaner owns Hampton Inn & Suites at Williamsburg Square, Holiday Inn Express, SpringHill Suites and Fairfield Inn and Suites, the latter three at SHG headquarters on Waddle Road in Patton Township. SHG has been involved in more than 80 hotels in the past 30 years, according to the news release.
“This is our third hotel financing vehicle,” Lance Shaner, chairman and CEO of SHG, said in the release. “Each has been tailored to fill a gap to meet the hotel industry’s specific financing needs at the time.”
The company will use the capital to provide equity and or debt through a real estate investment trust.
“There is a significant number of quality, capital-starved hotels that with adequate funding can not only survive, but thrive,” Shaner said, according to the press release.
“However, they need to restructure their capital stack which often is a complex process that requires in-depth understanding of the hotel industry not found at most conventional financing firms.”
According to Shaner President Plato Ghinos, “Our goal is to place the company’s initial $100 million capitalization within 12 months.”
The range of financing will be $3 million to $50 million for individual properties and portfolios, according to the release.
Shaner plans on focusing efforts on the eastern half of the United States, but said the company has no geographic boundaries.
Shaner and Ghinos will join D. Pike Aloian and John McGurk of Almanac to create a board of directors for the new venture.
This is not the companies’ first work together. According to the release, Shaner Hotel Group and Almanac have invested together twice before.