Fairwood Hospitality's Ansbro

Three hotel executives have launched a $150 million fund that will invest in the hotel industry. Any investment venture these days is, by necessity, characterized by equal parts hope and careful planning. Certainly that is the case with Fairwood Hospitality Investors LLC, whose business plan includes levering its equity by 50% to gain $300 million in purchasing power.

Still, though, the fund has a contingency plan in place should it not receive the bank line of credit, according to principal Ed Ansbro. “If we find deals we absolutely have to have and we haven’t gotten the debt sourced, we will buy in cash until the debt markets turn around.”

He thinks debt will begin to move again, albeit slowly, at the beginning of the year. Fairwood Hospitality Investors has been capitalized by the principals of Fairwood Capital LLC, a newly formed private equity fund, and two institutional investors. Fairwood’s principals are Ansbro, who is a former SVP of Equity Inns; Robert Solmson, the founder, former chairman and CEO of RFS Hotel Investors; and Richard Reiss, chairman of Georgica Advisors.