Noble Announces $1.0 Billion Final Close for Noble Fund V
Atlanta, Georgia (Tuesday, January 9, 2024) – Noble Investment Group ("Noble") today announced that it held the final closing for Noble Hospitality Fund V, L.P. ("Noble Fund V"). This is the fifth of Noble’s flagship series of real estate funds focused on value-added investments in select-service and extended-stay hotels across the United States.
Noble Fund V was oversubscribed with $1.0 billion of equity commitments from a global institutional base, including public state pension plans, corporate pensions, endowments, foundations, insurance companies, and wealth management firms. Ninety percent (90%) of Noble’s existing limited partners repeated their commitments to Noble Fund V, together with commitments from several new institutional investors.
Noble has delivered a 15% net IRR on $3.0 billion of realized capital across multiple market cycles over thirty years.*
"Our team, sourcing relationships, research DNA, data, and insights continue to generate outstanding returns for our investors and provide Noble with a significant and scalable competitive advantage,” said Mit Shah, Noble’s CEO. “The overwhelming support of Noble Fund V reflects the enduring trust of our limited partners, and we remain deeply grateful for their continued confidence in us as their fiduciary.”
Secular demand growth in travel and hospitality combined with substantially muted new supply continues to provide long-term pricing power for the sector. Noble believes it is well positioned to build upon the success of its predecessor funds and seeks to deliver outstanding risk-adjusted returns for the firm’s investors.
“We are proud to have reached our equity hard cap during this highly competitive fundraising environment when investors are exceedingly selective,” said Noble Managing Principal, Adi Bhoopathy. “The repeat commitments from our existing limited partners and new commitments from prominent institutional investors reflect the distinct advantage of our Noble platform.”
"The magnitude of loan maturities combined with record amounts of past-due renovations have created a generational investment opportunity for Noble to acquire income-producing hotels, recapitalize owners, and add value both operationally and physically,” said Noble Managing Principal, Ben Brunt. “Over multiple cycles, we have demonstrated that our experience, patience, and discipline allow us to deploy capital opportunistically.”
“Since the second quarter of 2021, Noble has made $2.0 billion of new investments, enhancing operational performance, delivering asset appreciation, and subsequently averaging a double-digit equity distribution each year,” said Noble Managing Principal, George Dabney.
“We continue to source opportunities not readily available to the open market, utilizing Noble’s vertically integrated competencies to make our investments more efficient, more profitable, and more valuable," said Noble Managing Principal, Steven Nicholas.
“Noble remains a leader in advancing design, innovation, technology, and energy-efficient solutions, helping drive performance and a stronger future for our investors, our communities, and our industry,” said Noble Managing Principal, Kevin Grass.
About Noble Investment Group
Noble is an award-winning real estate investment manager specializing in the travel and hospitality sector. With a track record spanning three decades, Noble has invested nearly $6.0 billion in communities throughout the country, adding value across cycles and supporting the significant creation of jobs. PERE has named Noble one of the Top 200 Global Investment Managers, and the firm has been recognized as one of the Best Places to Work by Pensions & Investments and the Atlanta Business Chronicle.
As a fiduciary to institutional investors, including foremost pensions plans, endowments, foundations, wealth management firms, and insurance companies, Noble's endeavors help to preserve and grow our limited partners' capital, which assists in providing retirement benefits for our country's teachers, law enforcement, firefighters, other pensioners, and financial resources for students to attend college. For more information, please visit www.nobleinvestment.com.
*Value-added strategies through September 30, 2023