Georgia’s Hotel Industry Gains Momentum -AVANA-Oaktree Secures Twelve Point Five Million Dollars Hilton Project to Enhance College Park’s Tourism Landscape: What new updates you need to know?

Published on February 28, 2025

The U.S. hospitality industry had been experiencing rapid changes, and a recent multi-million-dollar deal had demonstrated the growing role of private credit in hotel financing. AVANA Companies, a direct lender specializing in commercial loans, had announced the successful closure of a $12.5 million hotel project in College Park, Georgia, in partnership with Oaktree Capital Management.

This second deal under the $250 million AVANA-Oaktree Private Credit Partnership (AOPCP) had provided funding for the refinancing and property improvement of a Spark by Hilton hotel, owned by HKH LLC. With the transaction finalized within just one month—despite year-end holidays—industry analysts had pointed to this as an example of the increasing importance of private credit in the hospitality market, particularly at a time when traditional lending had been tightening.

The financing had been expected to support job creation and community revitalization, strengthening the appeal of College Park as a tourism and business hub within the greater Atlanta region.

College Park’s Proximity to Hartsfield-Jackson Airport Fuels Travel Demand

The new hotel project had been positioned near Hartsfield-Jackson Atlanta International Airport, the busiest airport in the world by passenger volume. This strategic location had underscored the demand for high-quality accommodations catering to business and leisure travelers alike.

Given Atlanta’s status as a major transportation gateway for domestic and international visitors, industry experts had anticipated that upgraded hotel properties like this one would improve the overall guest experience while contributing to the local economy. The investment had also aligned with broader trends in airport-adjacent hospitality developments, where accessibility and modern amenities had become key factors in attracting global travelers.

The Rising Role of Private Credit in Hospitality Investment

As financial markets had become more unpredictable, securing capital for hotel renovations and expansions had been increasingly challenging. Traditional lenders had adopted stricter lending criteria, making private credit partnerships such as AOPCP a viable alternative for hospitality investors.

AVANA’s CEO, Sundip Patel, had highlighted that private credit had been playing an essential role in addressing funding gaps left by conventional banks. He had emphasized that the speed and certainty of execution had been crucial in revitalizing properties and ensuring the sustainability of small business owners operating within the hospitality sector.

Supporting Minority-Owned Businesses and Local Entrepreneurs

One of the notable aspects of this deal had been its focus on supporting a minority business owner with a proven track record in hotel management. AVANA’s Chief Lending Officer, Sanat Patel, had emphasized that long-term partnerships built on trust had been instrumental in facilitating successful investments.

Since its founding in 2002, AVANA had dedicated itself to empowering small businesses, particularly those led by Black, Indigenous, and People of Color (BIPOC) entrepreneurs. The company had reported that 66% of its customers had been minority-owned businesses, with over $1 billion in loans provided—a significant contribution to inclusive economic growth.

This latest transaction had aligned with AVANA’s commitment to sustainable economic development, ensuring that local entrepreneurs had access to high-impact capital for their businesses.

How This Affects Georgia’s Tourism Industry

The hospitality industry had been undergoing a resurgence in demand, particularly in markets like Atlanta, where business travel, conventions, and tourism had remained strong. This hotel deal had been expected to contribute to the following key trends:

• More investment in airport-adjacent accommodations: With growing international air traffic, hotels near Hartsfield-Jackson had been seeing increasing demand for upgraded lodging options.
• Stronger economic growth in College Park: The revitalization of hospitality properties had been poised to attract more tourists, business travelers, and event attendees, further strengthening the city’s tourism economy.
• A shift toward alternative financing models: Private credit had been bridging funding gaps, ensuring that hotel projects remained financially feasible despite market fluctuations.

The Bigger Picture: National and Global Implications

Beyond Georgia, this transaction had been representative of a larger shift in global hospitality financing. With major hotel chains expanding and the travel industry continuing its recovery, financing options such as private credit partnerships had been emerging as an essential tool for funding renovations, acquisitions, and new developments.

In a tightening lending environment, global investors had been seeking fast and flexible funding solutions, making deals like this an indicator of the evolving nature of hospitality financing.

The Future of Hotel Development in the U.S.

As 2025 progressed, experts had anticipated that more hotel operators would explore alternative financing routes to fund their expansion plans. With AVANA and Oaktree planning additional hospitality investments, cities across the U.S. had been expected to see similar revitalization efforts in both urban and airport-centric districts.

The Hilton property in College Park had been viewed as a model for future deals, demonstrating how strategic investments could reshape local economies while supporting global travel infrastructure.

For travelers, the expansion of modern, well-financed hotel properties had meant improved experiences, more lodging options, and an increasingly competitive hospitality market—all of which had been key to shaping the future of tourism in Georgia and beyond.