Peachtree Lends $33M for North Florida Hotel Recap

Innisfree Hotels has sealed $32.6 million of bridge financing for the recapitalization of a dual-branded hotel on Florida’s Amelia Island, Commercial Observer has learned.

Peachtree Group originated the three-year, fixed-rate debt for the hotel development company’s 105-room Courtyard by Marriott Amelia Island and 134-key SpringHill Suites Amelia Island property in Fernandina Beach, Fla.

The two hotels at 2700 Atlantic Avenue, 37 miles north of Jacksonville, debuted in May 2021 and benefited from post-COVID-19 pandemic leisure demand upon opening, according to Jared Schlosser, senior vice president at Atlanta-based Peachtree Group. Schlosser said the loan is geared toward elevating the hotels’ revenues over the next couple of years to enable Innisfree to obtain permanent financing.

Schlosser said the two hotels are the newest on the market and just steps from the beach, and no new supply is in the pipeline, making the property strongly positioned for future growth.

“You could throw a football to the beach, so it is a great location with great brands and a super strong sponsor,” Schlosser told CO. “The fixed-rate bucket of capital we were able to execute is longer in duration, so it benefits borrowers like these that have a long-term hold strategy and a longer business plan.” 

Innisfree also operates other hotels on Amelia Island including the Seaside Amelia Inn, Comfort Inn Fernandina Beach, Amelia Hotel at the Beach and Ocean Coast Hotel at the Beach. 

Officials at Innisfree Hotels did not immediately return a request for comment.

Andrew Coen can be reached at acoen@commercialobserver.com