"The time is right to launch Ramsfield Hospitality Finance as we feel hotel property values are close to bottoming," says Mandel. "The weak economy, terrorism and war jitters and structural changes within the industry have significantly impacted most hotels' underlying cash flows. When you consider these factors with a difficult lending environment, we feel it's an excellent time for RHF to grab a meaningful share in this sector." Mandel anticipates there will be a lot of hotels sold over the next 12 months with buyers needing capital. He also expects RHF to get involved in refinancing efforts as well.

Under his leadership at Kennedy-Wilson, the company completed transactions valued at over $3 billion in a five-year period. Mandel also founded Kennedy-Wilson's Japan operation, which he later spun off as a separate public company. Helping Mandel build the business at RHF is managing director, Raymond M. Anthony, a 20-year veteran in real estate lending. Anthony is responsible for originating, structuring and acquiring collaterized financing on hospitality properties. Rounding out the new RHF team is senior associate Erik Warner, who will mainly underwrite potential investments, compile due diligence and asset manage RHF's investments.

Mandel says RHF has "deals in the pipeline" and has completed a direct-mailing campaign targeted at the hotel industry.