Peachtree issues $40 million CPACE financing for AC Hotel San Diego
BLG San Diego LLC opened the 147-room hotel in March 2023
By Vishnu Rageev RJun 25, 2024
PEACHTREE GROUP RECENTLY issued a $40-million retroactive Commercial Property Assessed Clean Energy loan to BLG San Diego LLC for the newly opened 147-room AC Hotel San Diego Downtown Gaslamp Quarter. The proceeds enabled BLG to reduce its senior loan with California-based Preferred Bank and E.Sun Commercial Bank to under $20 million, thereby mitigating the banks’ exposure, Peachtree said in a statement.
“This innovative capital structure significantly alleviated the immediate financial pressures, enabling the hotel to establish a solid cash flow foundation during its initial years of operation,” said Greg Friedman, managing principal and CEO, Peachtree Group.
Peachtree is led by Friedman, with Jatin Desai as managing principal and chief financial officer, and Mitul Patel as principal.
The CPACE financing is amortized over more than 30 years, with no payments required for the first year, followed by five years of interest-only payments.
“When we opened the AC Hotel San Diego Downtown Gaslamp Quarter in March 2023, there was a sizeable disconnect between hospitality fundamentals, which are strong, particularly in San Diego, while the debt markets were deteriorating meaningfully,” said Brad Honigfeld, the New Jersey-based Briad Group’s founder, chairman and co-CEO. “The Fed’s tightening process and rising fund rates drove up the cost of debt considerably.”
The new hotel is in downtown San Diego’s Gaslamp Quarter, known for its restaurants, shops and nightlife.
“Our hotel was benefiting from its location and performing to its original underwriting, but the debt costs were straining cash flows,” Honigfeld said.
Retroactive CPACE funding provides advantages for property owners, Peachtree said. It operates like standard pre-project funding but 100 percent of the loan proceeds can reimburse owners for previously incurred costs. This allows for better loan terms and improved cash flow after project completion.
“The financial relief it provides not only ensures the hotel’s success but also positions it for long-term stability,” said Friedman. “By reducing the financial burden in the early years, owners can focus on delivering exceptional guest experiences and achieving operational excellence.”
By 2024, $5.8 billion in U.S. hotel-securitized loans will need repayment, refinancing, extension, or sale, according to Peachtree, citing JLL Research. In this tough lending market, CPACE financing has become a liquidity source as owners face upcoming debt maturities and limited refinancing options. It has quickly gained traction in commercial real estate, reaching $7.2 billion in the U.S. in just over a decade, according to PACENation.
In December, Peachtree Group secured $150 million in commercial PACE financing, bringing its total to nearly $750 million since 2019. The company completed 23 CPACE financing deals in the U.S. in 2023, totaling $250 million in directly originated and balance-sheet-funded transactions.
HAMA is accepting submissions for its 20th annual student case competition.
The cases reflect a scenario HAMA members faced as owner representatives.
Teams must submit a financial analysis, solution and executive summary.
THE HOSPITALITY ASSET Managers Association is accepting submissions for the 20th Annual HAMA Student Case Competition, in which more than 60 students analyze a management company change scenario and provide recommendations. HAMA, HotStats and Lodging Analytics Research & Consulting are providing the case, based on a scenario HAMA members faced as owner representatives.
Student teams must prepare a financial analysis, a recommended solution and an executive summary for board review, HAMA said in a statement.
“Each year, the education committee looks forward to the solutions that the next generation of hotel asset managers bring, applying their own experiences to issues in ways that reveal new directions,” said Adam Tegge, HAMA Education Committee chair. “This competition demonstrates that the future of hotel asset management is in good hands.”
The two winning teams will each receive a $5,000 prize and an invitation to the spring 2026 HAMA conference in Washington, D.C. HAMA will cover travel and lodging.
Twenty industry executives on the HAMA education committee will evaluate submissions based on presentation quality, the statement said. HAMA mentors volunteer from September through November to assist teams seeking feedback and additional information. Schools will select finalists by Jan. 15, with graduate and undergraduate teams reviewed separately.
The competition has addressed topics in operating and owning hospitality assets and HAMA consulted university professors to update the format for situations students may encounter after graduation, the statement said.
This year’s participants include University of Denver, University of Texas Rio Grande Valley, Boston University, Florida International University, Michigan State University, Columbia University, Morgan State University, Howard University, New York University and Penn State University.
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Stonebridge Cos. added the Statler Dallas, Curio Collection by Hilton, to its managed portfolio.
The hotel, opened in 1956 and relaunched in 2017, is owned by Centurion American Development Group.
The property is near Main Street Garden Park, the Arts District and the Dallas World Aquarium.
STONEBRIDGE COS. HAS contracted to manage the Statler Dallas, Curio Collection by Hilton in Dallas to its managed portfolio. The hotel, opened in 1956 and relaunched in 2017, is owned by Centurion American Development Group, led by Mehrdad Moayedi.
It has an outdoor pool and more than 26,000 square feet of meeting space, Stonebridge said in a statement. The downtown Dallas property is near Main Street Garden Park, the Arts District, the Kay Bailey Hutchison Convention Center, Deep Ellum, Klyde Warren Park, and the Dallas World Aquarium.
“The Statler is an extraordinary asset with a storied history in Dallas, and we are thrilled to welcome it to our managed portfolio,” said Rob Smith, Stonebridge’s president and CEO. “Its blend of modern hospitality with timeless character makes it a natural fit within our lifestyle collection. We look forward to honoring the property’s legacy while enhancing performance and delivering an elevated guest experience.”
Stonebridge, based in Denver, is a privately held hotel management company founded by Chairman Navin Dimond and led by Smith. The company recently added the 244-room Marriott Saddle Brook in Saddle Brook, New Jersey, to its full-service portfolio.
GSA will keep federal per diem rates the same for FY 2026.
The lodging rate stays $110 and meals allowance $68.
AHLA raised concerns over the impact on government travel.
THE U.S. GENERAL Services Administration will keep standard per diem rates for federal travelers at 2025 levels for fiscal year 2026. The American Hotel and Lodging Association raised concerns that the decision affects government travel, a key economic driver for the hotel industry.
The standard lodging rate remains $110 and the meals and incidental allowance is $68 for fiscal year 2026, unchanged from 2025, GSA said in a statement.
“Government travel is a vital economic driver for the hotel industry and the broader travel economy,” said Rosanna Maietta, AHLA’s president and CEO. “That’s why it’s so important for government per diem rates to keep pace with rising costs across the economy. The GSA’s decision to keep per diem rates flat will place a strain on the hospitality industry as well as government travelers seeking lodging. A strong economy requires a thriving hospitality sector. We will continue to advocate with the GSA and members of Congress for per diem rates that reflect hotels’ rising costs of doing business.”
GSA sets per diem rates to reimburse federal employees’ lodging and meal expenses for official travel within the continental U.S., based on the trailing 12-month ADR for lodging and meals minus 5 percent. This is the first year in five that GSA has not raised the rates.
The federal administration said the decision reflects the federal government’s commitment to using taxpayer funds appropriately and for core mission activities. The steady per diem rates are enabled by the reduction in inflationary pressures from the previous administration.
“GSA's decision ensures cost-effective travel reimbursement while supporting the mission-critical mobility of the federal workforce,” said Larry Allen, associate administrator, GSA Office of Government-wide Policy.
The rate applies to federal travelers and those on government-contracted business for all U.S. locations not designated as “non-standard areas,” which have higher per diems. For fiscal year 2026, GSA will keep the number of non-standard areas at 296, unchanged from 2025.
Comfort Hotels will host the one-day Waffle Lounge in New York City on Aug. 21.
The Union Square event runs from 12 to 7 p.m.
Visitors can win a one-night stay at a participating Comfort or other Choice hotel.
CHOICE’S COMFORT HOTELS is bringing its signature breakfast item to life with the Waffle Lounge, a one-day pop-up event in New York City on Aug. 21. The event, timed to coincide with National Waffle Day on Aug. 24, highlights the brand’s role in offering guests a sense of home during their travels.
Waffles have been served at Comfort Hotels since the early 1990s, with more than 30 million made annually across its properties, Choice said in a statement. A recent national survey found that 70 percent of consumers prefer familiar meals over gourmet options.
“Waffles are a recognizable and meaningful part of the Comfort brand experience,” said Jenny Aboudou, Choice’s head of upper midscale brands. “Hosting a community event in New York City is a great way to highlight how this simple offering continues to resonate with travelers.”
The Waffle Lounge, located in Union Square, will be open from 12 to 7 p.m., the statement said. The event also marks more than 40 years of the Comfort brand, which includes Comfort Inn, Comfort Inn & Suites and Comfort Suites and operates more than 2,100 locations worldwide.
Guests can get free waffles with toppings, iced lattes, nail art, massage chairs and waffle-themed merchandise, Choice said. Visitors can also enter to win a one-night stay at a participating Comfort or other Choice hotels. The celebration extends online with a contest awarding 10 winners a one-night stay. To enter, users can tag a friend on Choice Hotels’ Instagram Waffle Day post and sign up for the Choice Privileges rewards program.
Choice recently launched two campaigns — “Stay in Your Rhythm” and “The WoodSpring Way” — to increase awareness and bookings across its four extended-stay brands.
Hospitality job openings fell by 308,000 in June, the largest drop of any industry.
National openings held at 7.4 million, a 4.4 percent rate.
Hospitality quit rates remain above the national average.
THE HOSPITALITY SECTOR saw the largest decline in job openings of any industry in June, according to the U.S. Bureau of Labor Statistics. Accommodation and food services fell by 308,000 positions from the previous month.
The “BLS Job Openings and Labor Turnover Survey” found the drop occurred despite overall U.S. openings holding at 7.4 million, a 4.4 percent rate. The hospitality category, which includes accommodation and food services, has been a major driver of labor demand in recent years but continues to face volatility in hiring needs and high turnover.
Nationally, the number of quits remained unchanged at 3.1 million, a 2 percent rate, the report said. However, hospitality continues to experience quit rates well above the national average, reflecting persistent retention challenges.
While industries such as retail trade and information saw increases in openings in June, the contraction in hospitality suggests a recalibration in staffing needs ahead of the second half of 2025. The next JOLTS report, covering July 2025, will be released on September 3 and will indicate whether the downturn in hospitality job openings is a short-term adjustment or the start of a longer trend.
A survey by Expert Market found 48 percent of accommodation businesses view staffing as their top risk for the year, followed by labor costs at 34 percent and maintenance at 27 percent.