Lowe Creates Hotel Fund

Lowe Enterprises, Los Angeles, has announced the establishment of a new investment fund targeting the subordinated debt of existing hotels and resorts.The real estate company said it has obtained approximately $160 million in investor equity commitments for the Lowe Hospitality Structured Investment Fund, providing total investment capital of about $320 million on a leveraged basis. "Access to capital for the hospitality sector is somewhat limited, as both Wall Street and traditional investors remain wary due primarily to the uncertainty of when the hospitality industry will stabilize and begin a sustainable recovery," said Ron Silva, chief investment officer of the fund and president of Lowe Hospitality Capital Markets. As a result, this is "an opportune time" to make such investments, he said. Investors in the fund include Lowe, institutional investors, and individual investors with a high net worth.