Pembroke Hospitality and the Ireland Strategic Investment Fund (ISIF) have announced a new €50 million Hotel Investment Fund (HIF) that will invest in hotels that suffered a negative impact to their trade as a result of the pandemic.
Pembroke, a hospitality sector advisory company and asset manager, and ISIF, a State development fund managed by the National Treasury Management Agency, said the HIF will provide owners with interim funding over the medium term to assist with their post-Covid business recovery.
It will target investments in hotels in the Republic, which are graded three-star and above and have a minimum of 25 bedrooms.
The HIF will provide investment in the form of a three-year preference equity, subordinated to senior/bank debt, with a coupon that is rolled up until redemption at the end of the term. Pembroke Hospitality will manage and execute the fund in partnership with BVP Investments.
The fund will invest in hotels that have a viable growth plan but are unable to raise finance from banks or alternative lenders. The HIF will provide facilities to hotels between €500,000 to €5 million for a three-year timeframe, with initial applications to be made through the HIF website, HifIreland.ie.