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Atlanta-based Noble Investment Group Noble Hospitality Fund V closed The company said in a news release that the $1 billion in equity will be used for value-add investments in select hospitality and extended stay hotels in the United States.
The real estate investment company’s fifth fund is made up of state public pension plans, corporate pensions, endowments, foundations, insurance companies and asset management companies. His 90% of Noble’s existing limited partners reiterated their commitment to Noble Fund V, according to the release.
“Our team, sourcing relationships, research DNA, data and insights continue to deliver outstanding returns for investors and significantly expand Noble’s capabilities,” Mit Shah, CEO of Noble, said in a release. “It gives us a possible competitive advantage.” “Noble Fund V’s overwhelming support reflects the enduring confidence of our limited partners, and we remain deeply grateful for their continued confidence in us as a fiduciary.”
Ben Brandt, Noble’s managing principal, said in a release that the company has demonstrated its ability to “deploy capital opportunistically.”
“The combination of large loan maturities and record amounts of past-due renovations allows Noble to acquire revenue-generating hotels, re-capitalize owners, and improve operational and physical “A generational investment opportunity has been created that adds value on both fronts.”
Fast forward to June 2023. New York University International Hospitality Industry Investment ConferenceMr. Shah cited several reasons why Noble will continue to invest in the mid-sized select services sector.
“One is from a construction cost perspective. Even if it costs $230 to $240 per square foot to build, we think we can build it if we have the land for $130,000 to $140,000 per key.” he said. “We believe it’s around $90.” [revenue per available room] We believe we can operate these assets with about seven to eight full-time employees, so we can actually generate similar profit margins. ”
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