In Brief: The Byways Hotel Portfolio has secured a total of $18 million in funding, comprising a $12 million USDA bridge loan and $6 million in C-PACE financing, provided by the Peachtree Group.
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Image Credit Holland Hotel
Peachtree Group has originated $12 million in bridge financing and $6 million in Commercial Property Assessed Clean Energy (C-PACE) financing to support the acquisition and renovation of the 78-key Byways Hotel Portfolio in Alpine and Fort Davis, Texas.
Peachtree Group has originated $18 million in financing for the Byways Hotel Portfolio, which consists of three historic hotels in Alpine and Fort Davis, Texas. The financing package includes a $12 million bridge loan and $6 million in C-PACE financing to fund the acquisition and renovation of the 78-key portfolio.
The Byways Hotel Portfolio includes the Holland Hotel, which currently has 27 keys and is planned to be expanded to 28 keys, the 30-key Hotel Limpia, and the 21-key Maverick Inn. These properties are located in USDA-eligible markets, defined as communities with populations under 50,000.
The bridge financing originated through Peachtree’s U.S. Department of Agriculture (USDA) Business & Industry (B&I) lending program, which provides long-term financing for business and real estate investments in rural communities. The USDA B&I program allows for up to 80% loan-to-value and terms of up to 30 years.
The C-PACE financing provides long-term, fixed-rate capital for energy-efficient and resiliency improvements to the properties.
The three hotels in the portfolio were built between 1912 and 1928. The Holland Hotel, located in downtown Alpine and designated as a Recorded Texas Historic Landmark, will undergo renovations that include a new restaurant layout and additional amenities. Hotel Limpia in Fort Davis is a full-service property with several historic buildings and on-site food-and-beverage offerings. The Maverick Inn is a motor lodge with updated rooms.
Upon completion of the planned renovations, the hotels are expected to preserve approximately 30 full-time jobs and create an additional 25 positions. Property improvements are also anticipated to enhance the local tax base.
The Big Bend National Park region, where the hotels are located, has seen increased development activity related to tourism demand. The hotels are near Sul Ross State University, McDonald Observatory, and local healthcare facilities. Alpine is the region’s main center for business and education, while Fort Davis attracts heritage tourists and is part of the Greater Big Bend International Dark Sky Reserve.
