IHG Hotels & Resorts is working with a new partner on a co-lending construction program to spur hotel development for the brand company.
The new initiative with Glendale, Arizona-based asset management platform Avana Companies provides an alternative, “borrower-friendly” financing option for hotel owners and developers who can apply for these loans.
Avana and IHG are reportedly committing $250 million to these construction projects in the United States, focusing on the Even Hotels, Avid Hotels, Atwell Suites and Holiday Inn brands, according to a news release from Avana.
Lori Tirado Celniker, director of capital investments and transactions, Americas at IHG Hotels & Resorts, said the new offering provides “an attractive financial alternative” for prospective hotel owners.
“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,” Tirado Celniker said in the news release.
Founded in 2002 for commercial real estate loans for sale to banks and credit unions, Avana has worked with more than 500 small businesses to provide these loans through Avana Capital and its other entities.
"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 U.S.," said Sundip Patel, CEO and founder of Avana.
In the third quarter of 2024, IHG signed 54 new U.S. hotels. IHG has 6,500 open properties with more than 2,000 in its development pipeline.