Noble Investment Group has closed its latest value-added hospitality investment fund oversubscribed, less than two months after raising roughly half of its target. According to the Atlanta-based investment firm, Noble Hospitality Fund II closed on $220 million in equity commitments, which is 10 percent above the hard cap of $200 million.
Noble received commitments from state and corporate pension plans, university endowments and foundations, fund of funds and the principals of Noble. Approximately 75 percent of the capital for Fund II was committed by repeat investors and those with a long-term relationship with Noble. New York-based placement agent Allegro Advisors advised the firm in its fundraising efforts.
The final close occurs less than two months after it was revealed that Noble had raised more than half of its equity target for the fund. It was reported early last month that the firm had received $101.68 million in commitments on behalf of Fund II.
Mit Shah, Noble’s chief executive officer, said: “We remain grateful for our investors' continued trust in our differentiated value-creation strategy, which we have been pursuing since 1993.”
Fund II follows the strategy of Noble’s prior vehicle, Noble Hospitality Fund, which closed on $310 million in February 2007. Prior funds include Noble Investments, which closed in 1999 with approximately $40 million in equity, and Noble Parallel Fund, which closed in 2003 with $182 million in equity and co-investments, according to the firm’s website. Hospitality Fund I became fully invested in 2012.
“We have been actively investing our new fund since the third quarter of last year, and we will continue to utilize our exceptionally strong relationships throughout the lodging industry to source opportunities as well as our internal core competencies to execute our investment strategy,” added Rodney Williams, chief investment officer at Noble.
Last month, Noble purchased the Courtyard by Marriott in Columbus, Ohio, for $11.9 million. Other acquisitions made by the firm include the Embassy Suites Cleveland in Beachwood, Ohio for $8.1 million in September and the Hilton Garden Inn in Monterey, California in May. Fund II has a two-year investment period.
Founded in 1993, Noble specializes in value-added and opportunistic investments in the lodging and hospitality sector. Through its private equity real estate funds, the firm has invested more than $2 billion in hotels throughout the US.