Financial Investment in Hospitality Sector Aligns with Sustainable Development Goals

Executive Summary of Transaction and Development Impact

A recent financial transaction, wherein Access Point Financial (APF) provided a $55 million loan to H&S Properties Development Corp., serves as a key investment in regional economic stability and sustainable infrastructure. The loan, designated for refinancing a four-hotel portfolio in Maryland and funding a comprehensive Property Improvement Plan (PIP), directly supports the advancement of several United Nations Sustainable Development Goals (SDGs), particularly SDG 8 (Decent Work and Economic Growth), SDG 9 (Industry, Innovation, and Infrastructure), and SDG 11 (Sustainable Cities and Communities). This partnership (SDG 17) between a capital provider and a property developer ensures the continued viability and enhancement of crucial community assets.

Contribution to SDG 8: Decent Work and Economic Growth

Securing Local Employment and Promoting Tourism

The refinancing provides financial stability to the hotel portfolio, thereby securing employment for staff across the four properties. The hospitality industry is a significant source of local jobs, and this investment ensures the continuation of decent work for numerous community members.

• Sustains jobs in hotel operations, including management, guest services, housekeeping, and food and beverage.
• The planned Property Improvement Plan (PIP) will create additional temporary jobs in construction, design, and skilled trades.
• By enhancing the quality of the hotels, the investment promotes tourism, a key driver of economic growth for the Baltimore and Aberdeen areas.

Advancing SDG 9: Industry, Innovation, and Infrastructure

Modernizing Infrastructure through Strategic Investment

The loan facilitates a direct investment into upgrading and maintaining essential tourism infrastructure. The portfolio’s dual-branded hotel model represents an innovative and efficient use of resources, a core principle of sustainable industrialization.

• The $55 million loan provides capital for a PIP, ensuring the hotels are modernized to meet current standards, enhancing their resilience and service quality.
• The dual-branded properties (Courtyard/Residence Inn and Hilton Garden Inn/Homewood Suites) optimize land use and operational efficiency by sharing infrastructure such as fitness centers, pools, and administrative resources.
• This model reduces the overall environmental footprint compared to constructing and operating separate facilities.

Fostering SDG 11: Sustainable Cities and Communities

Enhancing Urban Assets and Promoting Sustainable Practices

The hotels are integral components of the urban and community fabric in both Baltimore’s Inner Harbor and Aberdeen. The investment contributes to the economic health and attractiveness of these communities, with the PIP offering a significant opportunity to integrate sustainability features.

• The properties support major local economic and cultural hubs, including Ripken Stadium, the National Aquarium, and the Baltimore Convention Center.
• The PIP can be leveraged to install energy-efficient lighting and HVAC systems, low-flow water fixtures, and improved waste management systems.
• Upgraded and well-maintained hotels enhance the safety, inclusivity, and resilience of these urban areas, making them more attractive for residents and visitors alike.

Portfolio Overview and Strategic Locations

Aberdeen at Ripken Stadium Portfolio

1. Courtyard Aberdeen at Ripken Stadium: A 120-room hotel located near major distribution centers and Aberdeen Proving Ground.
2. Residence Inn Aberdeen at Ripken Stadium: A 78-room hotel co-located with the Courtyard, sharing amenities.

Baltimore Inner Harbor Portfolio

1. Hilton Garden Inn Baltimore Inner Harbor: A 183-room hotel situated steps from the Inner Harbor and its attractions.
2. Homewood Suites by Hilton Baltimore: A 165-key hotel sharing a prime location and facilities with the Hilton Garden Inn.

Analysis of Partnership for the Goals (SDG 17)

Mobilizing Financial Resources for Sustainable Development

The agreement between Access Point Financial and H&S Properties Development Corp. exemplifies a strategic partnership that mobilizes financial resources for sustainable development. By providing flexible, targeted capital, APF enables the property owner to invest in infrastructure and job retention, aligning private sector finance with public development objectives.

1. Which SDGs are addressed or connected to the issues highlighted in the article?

The article, which details a significant financial transaction in the hospitality industry, connects to several Sustainable Development Goals (SDGs) primarily through its economic and infrastructural implications. The investment supports local economies, jobs, and the maintenance of key infrastructure for business and tourism.

• SDG 8: Decent Work and Economic Growth

  The $55 million loan to refinance and improve a four-hotel portfolio directly supports economic activity. The hospitality industry is a major employer, and this investment helps sustain the operations of these hotels, thereby securing existing jobs and contributing to the local economy in Aberdeen and Baltimore, Maryland. The article notes the hotels’ proximity to “major distribution centers, including Pepsi-Frito Lay, Wayfair, Webstaurant Store, Amazon and Clorox,” highlighting their role in the broader business ecosystem.

• SDG 9: Industry, Innovation, and Infrastructure

  The loan provides capital for a “PIP” (Property Improvement Plan), which is a direct investment in upgrading and maintaining infrastructure. The hotels themselves are critical pieces of infrastructure that support tourism and business travel. The article mentions the dual-branded hotel model (e.g., “Courtyard Aberdeen at Ripken Stadium/ 78-room Residence Inn Aberdeen at Ripken Stadium”), which is an innovation in the hospitality industry designed to cater to different market segments from a single property, enhancing operational efficiency.

• SDG 11: Sustainable Cities and Communities

  The hotels are integral parts of the urban fabric of Baltimore and Aberdeen. The article highlights their strategic locations, such as being “steps from the Inner Harbor” and “within a mile of the National Aquarium, the Baltimore Convention Center and Johns Hopkins Hospital.” By providing accommodation and services, these hotels support the economic and social functions of the city, making it a more vibrant and accessible place for residents, tourists, and business travelers.

2. What specific targets under those SDGs can be identified based on the article’s content?

Based on the activities described in the article, several specific SDG targets can be identified:

1. SDG 8: Decent Work and Economic Growth

   • Target 8.2: “Achieve higher levels of economic productivity through diversification, technological upgrading and innovation, including through a focus on high-value added and labour-intensive sectors.” The investment in a PIP for the hotels represents an effort to upgrade and improve productivity in the labor-intensive hospitality sector.
   • Target 8.9: “By 2030, devise and implement policies to promote sustainable tourism that creates jobs and promotes local culture and products.” The financing of hotels located near major tourist and cultural attractions like “Ripken Stadium,” “the National Aquarium,” and “Orioles baseball at Camden Yards” directly supports the infrastructure needed for sustainable tourism that creates local jobs.

2. SDG 9: Industry, Innovation, and Infrastructure

   • Target 9.1: “Develop quality, reliable, sustainable and resilient infrastructure…to support economic development and human well-being.” The $55 million loan, particularly the portion allocated for a PIP, is a direct contribution to improving the quality and reliability of tourism and business infrastructure in Maryland.

3. SDG 11: Sustainable Cities and Communities

   • Target 11.4: “Strengthen efforts to protect and safeguard the world’s cultural and natural heritage.” By providing essential services (lodging) for visitors to cultural and recreational sites like the “Inner Harbor” and sports stadiums, the hotels indirectly support the economic viability and accessibility of these community assets.
   • Target 11.a: “Support positive economic, social and environmental links between urban, peri-urban and rural areas by strengthening national and regional development planning.” The hotels serve as economic hubs that facilitate business and tourism, strengthening the economic links between the city centers of Baltimore and Aberdeen and the surrounding regions, including major employers and distribution centers.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

While the article does not explicitly mention official SDG indicators, it contains quantitative and qualitative data that can serve as proxies or direct measures for progress.

1. Indicators for SDG 8

   • Financial flows to the tourism sector: The article explicitly states a “$55 million loan” has been provided to the hotel portfolio. This figure is a direct indicator of financial investment in the tourism industry.
   • Number of business units supported: The loan supports a “four-hotel portfolio” with a combined total of 546 rooms (120 + 78 + 183 + 165). This indicates the scale of the economic activity being sustained.

2. Indicators for SDG 9

   • Investment in infrastructure: A portion of the loan is designated to “provide capital for a PIP” (Property Improvement Plan). The amount of this capital is a direct indicator of investment in upgrading infrastructure.

3. Indicators for SDG 11

   • Support for local economic and cultural hubs: The article lists numerous key locations the hotels serve, including “Aberdeen Proving Ground,” “the Baltimore Convention Center,” “Johns Hopkins Hospital,” and multiple sports stadiums. The continued operation and improvement of hotels in these locations indicate ongoing support for the city’s economic and social infrastructure.

4. Create a table with three columns titled ‘SDGs, Targets and Indicators” to present the findings from analyzing the article. In this table, list the Sustainable Development Goals (SDGs), their corresponding targets, and the specific indicators identified in the article.

Source: businesswire.com