AVANA-Oaktree Private Credit Partnership Closes $12.5MM Hilton Hotel Deal, Driving Economic Growth in Georgia

February 20, 2025

Hotel deal near Atlanta Airport closed in a month

ATLANTA (February 20, 2025) – AVANA Companies, a direct lender specializing in commercial loans, announces the closing of a $12.5 million hotel project for HKH LLC in Georgia through its joint venture with Oaktree Capital Management. This deal, completed in just one month despite year-end holidays, demonstrates the partnership’s commitment to swift, certain execution in the private credit market.

The AVANA-Oaktree Private Credit Partnership (AOPCP) funded the refinance and property improvement of a Spark by Hilton property owned by HKH LLC in College Park, GA. This marks the second deal closure for the $250 million joint venture, which aims to transform the U.S. hospitality landscape by providing rapid funding for hotel projects in a tight lending environment.

“In today’s uncertain hospitality lending environment, private credit plays a crucial role in filling the gap left by traditional lenders,” said Sundip Patel, CEO and co-founder of AVANA Companies. “Our partnership with Oaktree exemplifies the speed and certainty of execution that’s vital in this market. We’re proud to support projects that create jobs and revitalize local economies by attracting tourists.”

The funding will contribute to job creation and continued community revitalization in College Park, GA, specifically in the region near Hartsfield-Jackson Atlanta International Airport. The AVANA-Oaktree partnership continues to demonstrate its ability to navigate the current economic landscape, providing crucial funding for hospitality projects when traditional lending sources have become more restrictive.

The deal supports a valued repeat client, an experienced small business owner from a minority background who operates multiple successful hotel franchises. AVANA Companies conducted due diligence, underwriting, and funding for the transaction.

“Our relationship with this entrepreneur is built on trust and respect,” said Sanat Patel, Chief Lending Officer and co-Founder of AVANA. “They’ve proven to be an excellent partner to AVANA over the years. Our ability to build capital for a better tomorrow lies in these strong relationships and the trust we have in our partners at Oaktree.”

This project aligns with AVANA Companies’ mission to empower American small businesses through impactful, socially-driven commercial real estate loans. Since 2002, AVANA has served over 500 small businesses, with 66% of their entrepreneurial customers being black, indigenous and people of color (BIPOC). The company has funded $1 billion in loans to minority entrepreneurs, directly and indirectly creating over 5,500 jobs.

With a robust pipeline of hotel projects, AOPCP aims to invigorate local economies and create jobs by providing SMEs in the commercial real estate sector across the U.S. with access to high-impact capital.

To learn more about investment and loan opportunities with AVANA Companies, visit www.avanacompanies.com.

What are AVANA's future plans?

AVANA-Oaktree Private Credit Partnership has a robust pipeline of hotel projects and aims to invigorate local economies. The partnership seeks to create jobs by providing SMEs in commercial real estate across the U.S. with access to high-impact capital.

How much has AVANA funded total?

AVANA Companies has funded $1 billion in loans to minority entrepreneurs since 2002. The company has served over 500 small businesses through their commercial real estate lending programs.

What is AVANA's lending focus?

AVANA Companies specializes in commercial real estate loans for small businesses, particularly minority entrepreneurs. The company has served over 500 small businesses since 2002, with a focus on socially-driven lending.

Who owns the Georgia hotel?

HKH LLC owns the Spark by Hilton property in College Park, GA that received the $12.5 million funding. The owner is described as an experienced small business owner from a minority background who operates multiple successful hotel franchises.

What hotel brand is involved?

The project involves a Spark by Hilton property owned by HKH LLC in College Park, GA. The AVANA-Oaktree Private Credit Partnership funded the refinance and property improvement of this hotel.

What types of businesses does AVANA serve?

AVANA Companies serves small businesses in commercial real estate, with 66% of their entrepreneurial customers being black, indigenous and people of color (BIPOC). Since 2002, the company has funded $1 billion in loans to minority entrepreneurs.

What is the AVANA-Oaktree partnership?

The AVANA-Oaktree Private Credit Partnership (AOPCP) is a $250 million joint venture between AVANA Companies and Oaktree Capital Management. This partnership aims to transform the U.S. hospitality landscape by providing rapid funding for hotel projects.

Where is the hotel project located?

The Spark by Hilton property is located in College Park, GA, near Hartsfield-Jackson Atlanta International Airport. The project involves refinancing and property improvement of the existing hotel facility.

How much did AVANA close recently?

AVANA Companies closed a $12.5 million hotel project for HKH LLC in Georgia through its joint venture with Oaktree Capital Management. This deal was completed in just one month despite year-end holidays.