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AWH Partners Launches Strategic Income Fund for Hospitality Investments

On August 13, 2025, AWH Partners announced the establishment of the AWH Strategic Income Fund, LP, a private real estate fund geared towards acquiring income-generating hotel properties throughout the United States. This strategic move comes at a time when the hospitality sector experiences significant changes in market dynamics, spurred by the aftermath of the pandemic, escalated interest rates, and increased volatility in financial markets.

The fund represents AWH Partners' first traditional venture into the realm of real estate investments, driven by the firm’s insightful analysis of current market conditions that indicate favorable opportunities for hospitality investments. The company is launching the fund with an initial capital commitment of $20 million, backed by both AWH Partners and a select group of legacy investors.

The AWH Strategic Income Fund is structured to provide consistent cash flow while safeguarding long-term capital through targeted investments in high-quality hospitality assets located in strategically selected markets renowned for their growth potential. This initiative is aimed at accredited investors who are seeking dependable income streams alongside the chance to participate in the dynamic hospitality sector, which positions itself well for achieving substantial cash-on-cash returns and sustained growth.

Key to the fund’s success is AWH Partners’ proprietary technology platform, designed to pinpoint attractive investment opportunities. The firm tracks and analyzes over 600 hospitality markets, allowing them to make informed decisions when selecting assets for the fund. This technological edge is essential, especially as the hospitality sector navigates through ongoing uncertainties and emerging opportunities.

Chad Cooley, one of the co-founders and managing partners of AWH, emphasized the current market conditions as a strategic time to launch this fund, stating, “Ongoing market volatility presents strategic opportunities to acquire income-generating assets at attractive valuations.” This outlook aligns with the firm’s commitment to leverage technology in identifying and capitalizing on opportunities that may otherwise remain hidden.

The fund aims to direct investments amounting to between $5 million to $15 million per deal, targeting five to ten transactions where AWH will act as a controlling equity partner. The selection of investment targets will focus on hotels facing challenges such as refinancing pressures or owner fatigue, primarily due to rising interest rates or inflation, which can lead to prolonged holding periods for current owners.

In a market analyzed by Jon Rosenfeld, co-founder of AWH, it appears that the hospitality sector is one of the few real estate asset classes where yields have recently expanded significantly. He pointed out a notable trend where stabilized hotels are trading at cap rates 100 to 200 basis points above their historical levels. With current borrowing costs being consistently 100 basis points or more inside these cap rates, the potential for attractive income becomes evident, particularly when combined with the operational efficiencies provided by AWH's subsidiary, Spire Hospitality.

With the establishment of the AWH Strategic Income Fund, the firm is solidifying its reputation as a leader in hospitality investment, development, and management. While Spire Hospitality manages the firm’s hotels from Dallas, AWH’s investment and real estate development operations are headquartered in New York City.

Russ Flicker, another co-founder, sharedhis enthusiasm about the timing of this fund, stating, “We intend to capitalize on this unprecedented investment opportunity that promises to yield exceptional buying opportunities over the next two to three years.” This optimism is further magnified by the participation of trusted investors who have joined this innovative venture, along with an open invitation to new investors wishing to become a part of the AWH community.

About AWH Partners

Since its inception in 2010, AWH Partners has invested over $2 billion in the hospitality real estate sector, working alongside prominent institutional capital providers and investors. The firm boasts a vertically integrated model, which includes both Spire Hospitality for hotel management and AWH Development, a comprehensive real estate development company. The principal members of AWH come with extensive experience from notable firms such as Blackstone and The Related Companies, positioning AWH as a formidable player in the hospitality investment landscape.