Madison Realty Capital and Newbond Holdings have set up a US hospitality real estate lending platform with an initial $500m (€432m).

The investment firms have launched Madison Newbond, a lending platform that will provide first mortgages, mezzanine loans and preferred equity to hotel owners and developers.

Josh Zegen, managing principal and co-founder of Madison Realty Capital, said: “The hospitality industry has experienced significant disruption throughout the pandemic and there is a clear need for creative and flexible lending solutions for hotel owners as they continue to recover from the changes to their business plans.

“We are enthusiastic about joining forces with Newbond to expand our product offering tailored to meet the evolving needs of hospitality real estate owners and operators.”

Neil Luthra, founding partner at Newbond, said Madison’s resources coupled with Newbond’s hotel underwriting capabilities will “best position the platform to identify and capitalise on exciting opportunities in the hospitality space”.

Madison Realty Capital is a real estate private equity firm that manages approximately $6.7bn in total assets on behalf of an institutional global investor base.

Newbond, founded this year by Luthra and Vann Avedisian, is a real estate investment and operating platform focused on debt and equity investments across multiple real estate product types with a hospitality focus. The partners at Newbond have completed over $15bn of debt and equity transactions. 

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