HOUSTON--(BUSINESS WIRE)--Lone Star PACE, a leading administrator of Texas’ property assessed clean energy program, today announced it facilitated an $11.3 million C-PACE loan for a 17-story, dual-branded hotel planned for Downtown Houston.
The 275-room Holiday Inn Express/Staybridge Suites will replace a 20,000-square-foot parking lot at 1319 Texas Ave. The property will include 275 guest rooms, 391 square feet of meeting space and a host of luxury amenities. It will also feature 2,000 square feet of ground-level retail.
Lone Star PACE worked with the project’s sponsor, Neway Hospitality, an experienced hotel developer, owner and operator with a deep track record in the Houston market, to secure the loan. Proceeds will fund a number of sustainable upgrades, including improvements to the building’s envelope, electrical and mechanical systems, and HVAC.
Lee McCormick, president of Lone Star PACE, said: “We were elated to partner with Neway Hospitality to lower the cost of development through the use of C-PACE. As a financing tool, C-PACE offers favorable terms and conditions, but it also helps pave the way toward a greener future by unlocking access to sustainable upgrades at no up-front cost to the property owner.”
Commercial Property Assessed Clean Energy (C-PACE) is a low-cost, long-term financing mechanism that funds up to 100% of energy efficiency, renewable energy and water conservation upgrades. Property owners can use C-PACE to finance building retrofits and new construction through a special assessment on their local property tax.
Ali Momin, president of Neway Hospitality, said: “In a tight debt market, finding innovative ways to fill the capital stack is critical to getting projects across the finish line. Thanks to a strong partnership with Lone Star PACE, we were able to leverage C-PACE to not only bridge a financing gap but to also outfit the property with energy-efficient measures that will ensure the hotel is resilient for years to come.”
About Lone Star PACE
Lone Star PACE serves as a program administrator for city and county Commercial Property Assessed Clean Energy (C-PACE) programs in Texas. We help local governments, economic development corporations, chambers of commerce and trade associations promote economic development and conservation by facilitating C-PACE projects with property owners, PACE lenders, contractors and other stakeholders. Our goal is to promote energy and water conservation as well as increased property values while positively impacting cash flow and utility savings for property owners.
About Neway Hospitality
Neway Hospitality is a leading developer, owner and operator of best-in-class hotels in the U.S. Renowned for fostering a culture of excellence and innovation, the Houston-based firm delivers projects that push the boundaries of traditional hospitality, integrating cutting-edge technology, sustainable practices and immersive storytelling that redefine the guest experience.
