Bain Capital, Smith Hill Launch $1B Hospitality-Focused Debt Platform

Bain Capital Special Situations and commercial real estate debt manager Smith Hill Capital, an affiliate of real estate firm Procaccianti Companies, have formed a joint venture to originate debt and preferred equity for companies in the hospitality sector.

The platform aims to deploy $1 billion over the next several years. The joint venture will focus on new loan originations and debt refinancing within US primary and secondary markets. The firms will also look to acquire debt and provide rescue capital to high-quality borrowers.

“Rising interest rates coupled with lender pullback in the real estate debt capital markets has created a significant opportunity to deliver flexible financing solutions to high-performing, growth-oriented hospitality borrowers,” said David DesPrez, a managing director at Bain Capital.

Bain Capital has extensive experience investing in businesses in the sector, including Apple Leisure Group, Hard Rock Hotel Marbella, Hotel Don Carlos, Marriott International, Inc.’s EDITION brand, Ooedo Onsen Holdings and Pyramid Global Hospitality.

The Special Situations group manages $19 billion in assets and has invested more than $28 billion since inception in 2002.