GLENDALE, Ariz. (January 27, 2024) – AVANA Companies, a direct lender specializing in commercial loans, announces a new co-lending construction program with IHG Hotels & Resorts, one of the world’s leading hotel companies. This collaborative initiative aims to accelerate U.S. hotel development within the IHG brand family. Hotel owners and developers seeking to build or convert properties under select IHG brands can apply for these loans, providing a crucial lifeline in a challenging lending environment.
The program offers a borrower-friendly alternative to standard financing through a competitively priced blended rate. It addresses financial hurdles in today’s hotel investment landscape, where traditional lenders have tightened their criteria. AVANA and IHG will commit $250 million in construction loans for U.S.-based projects primarily across the EVEN Hotels, avid hotels, Atwell Suites and Holiday Inn brands.
“This collaboration with IHG creates a powerful financing solution for hotel owners in today’s challenging hospitality landscape,” said Sundip Patel, CEO and Founder of AVANA Companies. “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.”
The Avana Co-Lending Construction Program aims to reduce development timelines and supports IHG’s U.S. pipeline, which accounts for nearly 950 hotels and represents nearly half of its overall global pipeline. In Q3 2024 alone, IHG signed 54 new U.S. hotels, primarily across its Essentials and Suites brands.
“IHG’s strong market position and commitment to owner support make them an ideal lending partner for AVANA,” said Sanat Patel, Chief Lending Officer and co-Founder of AVANA Companies. “Our advanced underwriting ensures we vet borrowers thoroughly. We meet with every business owner we lend to, putting a name and face to each loan as part of our due diligence.”
“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,” said Lori Tirado-Celniker, Director of Capital Investments & Transactions, Americas, IHG Hotels & Resorts. “We look forward to working with AVANA to deliver an attractive financial alternative and ultimately help owners introduce new brands and standout properties to a wide range of Americas markets.”
Since 2002, AVANA has served over 500 small businesses, with 66% of their entrepreneurial customers being black, indigenous and people of color (BIPOC). The company has funded $1 billion in loans to minority entrepreneurs, directly and indirectly creating over 5,500 jobs.
