Voyage Capital Group Secures Financing for AC Hotel by Marriott in Denver Gateway Park

DALLAS, TX – [Date of Publication] – Voyage Capital Group, a prominent real estate investment and development firm headquartered in Dallas, Texas, today announced the successful completion of financing for the AC Hotel by Marriott located within the burgeoning Denver Gateway Park development in Denver, Colorado. This significant transaction encompasses both the acquisition of the property and a construction completion loan, paving the way for the final stages of development and the eventual opening of this modern hospitality asset.

The financing package was expertly originated by Peachtree Group, a leading real estate investment firm based in Atlanta, Georgia. The capital stack for this project is particularly noteworthy, strategically combining traditional Senior Debt with innovative Commercial Property Assessed Clean Energy (CPACE) financing. This blended approach not only provides the necessary capital for the project but also aligns with growing industry trends towards sustainable and energy-efficient development.

The AC Hotel by Marriott brand, part of the extensive portfolio of Marriott International (NASDAQ: MAR), is known for its focus on design-led spaces, European-inspired aesthetics, and a seamless guest experience. The Denver Gateway Park location is strategically positioned to benefit from the area's ongoing growth, including proximity to Denver International Airport, major transportation routes, and a growing corporate and residential base. This positioning is expected to drive demand from both business and leisure travelers.

Voyage Capital Group's decision to invest in this specific asset underscores their confidence in the Denver market, particularly the Gateway Park area. The successful securing of this complex financing structure, especially the inclusion of CPACE, highlights the firm's ability to navigate sophisticated financial landscapes and leverage diverse funding sources. CPACE financing is a mechanism that allows property owners to finance energy efficiency, renewable energy, and water conservation projects through a voluntary property assessment, offering long-term, low-cost capital.

This project is anticipated to contribute positively to the local economy through job creation during the construction phase and ongoing operations. Upon completion, the AC Hotel will add a valuable hospitality option to the Denver Gateway Park area, supporting the continued development and attractiveness of the region.

Market Context and Implications

The Denver hospitality market has shown resilience and growth potential, driven by a strong economy, increasing tourism, and a growing population. The Gateway Park area, in particular, is experiencing significant development across various sectors, including commercial, residential, and hospitality. The successful financing and completion of the AC Hotel project are indicative of continued investor confidence in this submarket.

The use of CPACE financing in this transaction is also a significant trend to watch in the real estate development sector. It reflects a growing emphasis on sustainable building practices and provides developers with an alternative, often more favorable, financing option for green initiatives. This could set a precedent for future hotel developments in Denver and other markets.

For Marriott International (MAR), the addition of another AC Hotel to its portfolio strengthens its presence in a key market and expands its offering of lifestyle-focused properties. While the impact of a single hotel on a large company like Marriott is incremental, it contributes to the overall brand growth and market penetration strategy.

Investment Insights

For investors interested in the hospitality sector or real estate development, this transaction offers several insights:

• Market Focus: The investment highlights the continued attractiveness of the Denver market, particularly growth areas like Gateway Park.
• Financing Innovation: The use of CPACE financing demonstrates creative capital structuring and the increasing importance of sustainable development in attracting investment.
• Brand Strength: The project leverages the established brand recognition and operational expertise of Marriott International, which can be a key factor in a hotel's success.

Investors looking at MAR stock should consider the company's overall development pipeline, its exposure to various geographic markets, and its ability to adapt to changing travel trends. While this specific project is a positive development, it's one piece of a much larger global strategy.

Voyage Capital Group's successful closing of this financing is a positive step for the AC Hotel project and underscores the continued activity and innovation within the real estate investment and development landscape.