WEST PALM BEACH, FLA. – Electra America, a leading real estate platform specializing in the multifamily and residential sectors, and AKA, the global leader in luxury hotel residences, have teamed up to launch an opportunistic hotel investment fund focused on distressed assets in urban gateway markets. The new venture, Electra America Hospitality Group (EAHG), is in process of raising $500 million in capital from investors for the acquisition of independent hotels in major gateway markets.
Through its “Electra America Opportunity Fund,” EAHG will focus on the acquisition, repositioning and stabilization of well-located hotels with strong appreciation potential in urban gateway markets where both partners have existing expertise.
Russ Urban, a veteran hospitality executive, will serve as CEO of the new venture. He brings over four decades of expertise to the role, having served in leadership positions at High Hotels Ltd., Destination Hotels & Resorts, HEI Hotels & Resorts and Marriott International, among others.
The lodging industry experienced one of the most challenging years on record in 2020, according to the American Hotel and Lodging Association. Conditions are expected to improve in 2021 – but industry experts are still expecting a wave of forced hotel sales and foreclosures as a result of the financial stress brought on by the pandemic.
“The partnership of Electra and AKA represents an unparalleled opportunity to inject fresh capital into the hotel sector at a time when it is needed most,” said Urban. “This venture combines the existing, successful on-the-ground platform of AKA with Electra America’s global financial strength to create long-term value for investors.”
Added Larry Korman, President of AKA Hotel Residences and co-CEO of Korman Communities, “AKA has been recognized as the global luxury leader within the fastest growing segment of the hospitality industry. The collaboration of our leadership teams, which offer over a century of management expertise in the hospitality and residential sectors, will create the strategic synergy to make this a successful investment platform.”