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Ramsfield Hospitality Finance JV Launched by Mandel

NEW YORK CITY-A new investment firm, started by industry veteran Richard Mandel, has been established to provide mezzanine financing for hotel owners and investors in the top 25 US hotel markets.

By Barbara Jarvie | Updated on June 02, 2003

NEW YORK CITY-In response to a distressed hospitality real estate sector, Richard Mandel, former president of Kennedy-Wilson Inc.’s Commercial Investment Sales Group, has formed Ramsfield Hospitality Finance (RHF), an investment firm set up to provide mezzanine financing for hotel owners and investors. Mandel’s joint venture partner is an affiliate of Cargill Value Investment, based in Minnetonka, MN. RHF will provide subordinate loans ranging from $3 to $12 million on properties located in the top 25 US hotel markets and that are valued at $15 million to $60 million.

“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.

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