FAIRFAX, Va.–Third-party management company Crestline Hotels & Resorts, LLC, announced the creation of a $300 million fund that Crestline will use to acquire hotels and invest in properties with strategic capital partners. The company says that the goal of these investments is 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.
“We are actively identifying investment opportunities for our new fund within the upscale and upper-upscale hospitality segments,” James Carroll, Crestline’s president and CEO, says. “Crestline will use the fund and our management expertise to convert underperforming hotels into lucrative investments that outperform their competitive sets. 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. We’ve been very successful steadily growing our management business with our current owners based on our strong track record; and this fund will open up new opportunities for us to spur even greater growth of our management portfolio.”
“We are very excited about launching this fund and investing directly into our management portfolio,” Kevin Coyer, director of investment and development for Crestline, adds. “I look forward to talking with owners and investors about how we can provide capital and expertise to turn hotels into better-performing investments.”
Photo: Westin Washington National Harbor Hotel, a Crestline-managed property