Hotel Equity Investments
Skyward Hospitality utilizes its balance sheet and partnership network to provide pure equity investments in hotel projects. Whether it is early stage development, overages in construction or support in a slowly ramping hotel asset, Skyward has the expertise and experience to recognize these unique situations and execute on creative financing with ownership.
Early Stage Development
From land acquisition to capital for entitlements this is the riskiest money in the hotel industry. Skyward will partner with developers to reduce risk for all involved. Along with the capital injection Skyward will support projects to maximize entitlement benefits and reduce timelines to stay on budget.
Providing the pure equity piece in the capital stack is where Skyward thrives. There are many senior, mezzanine and bridge lenders available in the marketplace and Eagle partners with many of the these institutions. Where Eagle specializes is in providing the equity which is many times the most difficult part of the capital stack for developers. The amount of equity injected is typically between 250k to 5MM so we can cater to the smaller transactions that many institutions will not touch.
Skyward's expertise in hotel management is one of the best in the industry. The principals have worked with all the major brands and dozens of independent properties.
Cash Flow for Ramp Up
Often times when a hotel first opens it takes more time than projected to bring in the cash flows expected. This can put ownership in a difficult position with lenders, partners and overall cash reserves even though the underlying asset will be a successful business. Often in this situation outside lenders will take advantage at the cost of ownership. Many times Skyward can see the long term benefits and a solution with ownership to create a more profitable outcome that benefits all involved.