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Private credit is emerging as a “powerful force reshaping the hospitality industry” as hoteliers seek out more financing options, according to the chief executive of private credit firm Avana Companies.
“Partnerships between private lenders and institutional investors are driving significant growth in the hospitality sector, fuelling new development and renovations,” said Sundip Patel.
The joint venture between Oaktree Capital Management and Avana Capital is one example. Launched in 2024, the partnership was formed to deploy $250m (£188.7m) in private credit to small and medium-sized enterprises in the commercial real estate sector, including hospitality.
The venture combines Oaktree’s institutional capital with Avana’s origination and servicing capabilities, to support hotel developers and owners.
“Collaborations like the Avana-Oaktree private credit partnership open new avenues for hotel developers and owners in the challenging funding environment, while also creating more flexible and accessible financing options for the industry,” said Patel.
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In Ohio, Avana’s and Oaktree Capital Management’s partnership closed a $12.5m deal for a Hilton hotel, boosting the state’s economic growth and creating jobs.
The same collaboration finalized another $12.5m Hilton hotel deal in Georgia, supporting local communities through hospitality development.
“These examples demonstrate the tangible impact of private credit partnerships on regional economic landscapes,” Patel said.
Read the full article: https://alternativecreditinvestor.com/2025/04/17/avana-ceo-private-credit-is-powerful-force-reshaping-hospitality/
This article was originally published on alternativecreditinvestor.com. Accessed on April 17, 2025.