€50M Hotel Investment Fund

The Ireland Strategic Investment Fund (ISIF) and Pembroke Hospitality have announced a new €50m fund targeted at the hospitality sector.

Pembroke Hospitality, which acts as an advisory firm in the sector and counts former Jurys Doyle Chief Executive Niall Geoghegan and ex-PwC Mark Lynch as co-founders, announced the launch of the Hotel Investment Fund (HIF). It is being established to invest in hotels whose trading has been negatively impacted by the Covid pandemic.

Speaking with the Sunday Independent, Pembroke’s Lynch said the launch of the €50m fund was "very exciting".

"It is coming at a good time, a lot of hotels have been badly impacted throughout Covid, some more than others. Thankfully business and trade are recovering pretty well. But there are still going to be legacy issues with balance sheets that are going to take a bit of time to fully repair."

The HIF provides hotel owners with interim funding over the medium-term, allowing their business to recover and grow post-pandemic. It will target investments in Irish hotels graded three-star and above, with a minimum of 25 bedrooms.

HIF will provide investments in the form of three-year preference equity (subordinated to senior bank debt) with a coupon that is rolled up until redemption at the end of the term. Pembroke will manage and execute the fund in partnership with BVP Investments.