Stonehill Strategic Capital to Complete Nearly $200 Million in Hotel Financing in 2016 First Quarter

Company Projects Record Year in Transaction Activity

ATLANTA, Ga., March 21, 2016 — Stonehill Strategic Capital, LLC (“SSC”), an affiliate of Peachtree Hotel Group, today announced it will end the 2016 first quarter closing approximately $190 million in hotel financing. The record quarter follows a highly productive 2015 that saw the company execute on 23 transactions. SSC currently has a substantial number of projects in the pipeline and actively is funding acquisitions and recapitalizations for both stabilized and transitional asset with strong flags in secondary and tertiary markets.

SSC funded 11 hotel fixed-rate permanent loans, floating-rate bridge loans and preferred equity investments in the 2016 first quarter.

“Our outlook for experienced non-bank balance sheet lenders is quite optimistic for the remainder of the year,” said Mat Crosswy, president of SSC. “Lending in this phase of the cycle requires a deep understanding of the industry. We are seeing CMBS lenders, as well as regional and community banks, beginning to pull back because of the current regulatory environment and a lack of understanding of the space. This creates greater opportunities for established lenders like SSC to find the best projects and sponsors, responding to some $24 billion in CMBS loans coming due in 2016 and 2017. We project a record year with the opportunity to continue focusing on execution and structure that best suits our sponsors.”

“Given where we are in the cycle, we believe there still is upside, albeit at a slowing pace, especially for seasoned owner/operators,” said Michael Harper, vice president. “We believe the market will become more conservative as the year progresses, with higher interest rates and greater equity requirements. Owner track records from earlier cycles will play an increasingly important role in lending decisions. Despite the challenges, we expect interest rates to remain quite attractive.”

“The 2016 first quarter serves as a prototype for what the year ahead will look like as we foresee plenty of runway left in this cycle even as we approach its peak,” noted Brent Leblanc, senior vice president. “Last year’s achievements, coupled with the conservative underwriting standards in the lending market and increasing interest rates, give us confidence in our continued success.”

“With the recent market shift, we are well equipped to service our clients with well-organized funds, backed by our reputation for precise and efficient loan processing,” Crosswy added. “Although the industry doesn’t appear to be in any crisis of overbuilding, more care will be taken in underwriting. With our in-depth experience as lenders, owners and operators, we can better analyze projects and offer creative and prudent financing, ranging from bridge loans to preferred equity investments.”

About Stonehill Strategic Capital

Stonehill Strategic Capital, an affiliate of Peachtree Hotel Group, is primarily focused on funding permanent financing, bridge loans, mezzanine loans and preferred equity investments backed by limited-, select-, and compact full-service hotel assets. Stonehill Strategic Capital provides creative finance solutions for hospitality projects seeking capital to complete acquisitions, recapitalizations, refinancings, and renovations. For additional information, please visit http://stonehillstrategiccapital.com/.

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