Shaner Forms $200M JV to Develop Hotels

STATE COLLEGE, PA-Shaner Hotel Group has formed a partnership with Five Arrows Realty Securities IV LP to develop Marriott-branded hotel franchisees throughout the eastern half of the US. Called Shaner Hotel Holdings LP, the partnership combines hotel interests from the locally based SHG and a capital commitment from Five Arrows, an investment fund managed by New York City-based Rothschild Realty Managers LLC.

Shaner Hotel Holdings LP has approximately $200 million of debt and equity to invest in the development and construction of between 12 and 15 Marriott-branded hotels. Lance Shaner, chairman and CEO of SHG, tells GlobeSt.com that Rothschild/Five Arrows is investing $63 million of equity in the partnership and the JV will borrow approximately $140 million on the properties under development.

They will include the Residence Inn, Courtyard by Marriott and Fairfield Inn & Suites brands. The targeted areas are in the Northeast and Southeast. The partnership currently has five properties in its development platform underway in Northern and Central Florida, and Shaner says all of the new properties will be developed within two years.