The portfolio includes three hotels in Texas, US. Credit: Pandora Pictures / Shutterstock.com.

Peachtree Group has secured a $12m bridge loan and $6m in Commercial Property Assessed Clean Energy (C-PACE) financing to facilitate the purchase and refurbishment of the Byways Hotel Portfolio, consisting of three historic hotels in Alpine and Fort Davis, Texas, US.

The Byways Hotel Portfolio comprises the Holland Hotel with 27 keys, which will be expanded to 28; Hotel Limpia with 30 keys; and the 21-key Maverick Inn.

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This funding will use Peachtree Group’s US Department of Agriculture (USDA) Business & Industry lending programme.

The C-PACE financing offers long-term, fixed-rate capital to implement energy-efficient and resiliency upgrades at the hotels, aiming to reduce the cost of capital and improve project economics.

The combined capital arrangement demonstrates Peachtree Group’s continued expansion in government-guaranteed lending and its ability to structure deals across the capital stack.

Peachtree Group’s strategy, government lending senior vice-president Zach Chandler said: “This transaction demonstrates how we are leveraging our USDA lending platform alongside C-PACE financing to deliver a comprehensive capital solution.

“By integrating government-guaranteed lending into our broader credit strategy, we are able to support both the repositioning of these historic assets and their long-term financing needs.”

Peachtree Group’s USDA platform is focused on structuring government-guaranteed loans that offer borrowers long-term capital in markets where traditional lending is limited.

Situated in USDA-eligible locations with populations under 50,000, the hotels qualify for up to 80% loan-to-value and terms up to 30 years.

Upon completion, they are expected to preserve about 30 full-time jobs while creating 25 new positions. Improvements are also anticipated to benefit the local tax base.

In February 2025, Peachtree Group launched two dual-branded hotels in Paris, Texas.