Noble Investment Group secures $1 billion for hospitality fund

The fund targets investments in U.S. select-service and extended-stay hotels

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$1 billion for hospitality fund
Mit Shah-led Noble Investment Group finalized Noble Hospitality Fund V at $1 billion, with a 90 percent recommitment from existing limited partners and additional support from new institutional investors, the company said. Noble has sustained a 15 percent net IRR on $3 billion of realized capital over thirty years, navigating various market cycles, according to Noble.

NOBLE INVESTMENT GROUP, led by Mit Shah as CEO, has closed the latest installment in its Noble Hospitality Fund V, securing $1 billion. The fund focuses on value-added investments in select-service and extended-stay hotels across the U.S. and was oversubscribed, attracting $1 billion in equity commitments from a global institutional base, Noble said in a statement.

Ninety percent of Noble’s existing limited partners recommit to Noble Fund V, alongside new institutional investors, Noble said. The company has achieved a 15 percent net IRR on $3 billion of realized capital over thirty years, spanning multiple market cycles.

“Our team, sourcing relationships, research DNA, data, and insights continue to generate outstanding returns for our investors and provide Noble with a significant and scalable competitive advantage,” said Shah. “The overwhelming support of Noble Fund V reflects the enduring trust of our limited partners, and we remain deeply grateful for their continued confidence in us as their fiduciary.”

Boon from hospitality growth

Persistent demand growth in travel and hospitality, along with limited new supply, maintains lasting pricing power for the sector, Noble added. The company aims to capitalize on the success of its previous funds, striving to achieve strong risk-adjusted returns for investors.

“We are proud to have reached our equity hard cap during this highly competitive fundraising environment when investors are exceedingly selective,” said Adi Bhoopathy, Noble managing principal. “The repeat commitments from our existing limited partners and new commitments from prominent institutional investors reflect the distinct advantage of our Noble platform.”

“The magnitude of loan maturities combined with record amounts of past-due renovations have created a generational investment opportunity for Noble to acquire income-producing hotels, recapitalize owners, and add value both operationally and physically,” said Ben Brunt, Noble managing principal. “Over multiple cycles, we have demonstrated that our experience, patience, and discipline allow us to deploy capital opportunistically.”

Since the second quarter of 2021, Noble has made $2 billion of new investments, enhancing operational performance, delivering asset appreciation, and subsequently averaging a double-digit equity distribution each year.

In December, Noble Investment Group achieved recognition in the ‘2023 Best Places to Work in Money Management’ by Pensions & Investments.  Kamara Batchelor was appointed as the new Director of Fund and Corporate Accounting in October.