Pro-Invest secures green loan financing from Aareal for five hotels

Pro-Invest Group has secured green loan financing for five hotels within the APAC region from Aareal Bank.

Marking Aareal’s largest green hotel portfolio loan in Asia-Pacific, this loan has enabled the refinancing of Pro-Invest’s Holiday Inn Express Brisbane Central, Holiday Inn Express Adelaide City Centre, Holiday Inn Express Melbourne Southbank, Holiday Inn Express Newcastle, and Holiday Inn Express Sydney Airport.

All five hotels are achieving or surpassing the minimum required 4.5-star rating under the National Australian Built Environmental Rating System (NABERS) Energy rating scheme.

Aareal Bank acted as the arranger and sole lender in the financing of this hotel portfolio.

Why it matters

This reflects a growing trend towards sustainable and environmentally conscious practices, further signalling the importance of incorporating sustainability initiatives in order to attract favorable financing terms. In August, Aareal agreed a DKK 769 million (€103 million) financing agreement under the group's green finance framework for Villa Copenhagen Hotel in Denmark. In March, Aareal provided - in conjunction with HSBC and ABN AMRO Bank – a €480 million sustainability-linked loan to CitizenM.

What they said

Thomas Adaemmer, managing director & head of Asia-Pacific at Aareal Bank said: “By prioritising green financing, we aim to encourage a shift towards more sustainable practices across industries. In this context, our partnership with Pro-invest Group stands out as a prime example of what can be achieved when financial institutions and industry leaders work together. Pro-invest's dedication to environmental excellence not only meets our stringent criteria but also sets a benchmark for the hospitality sector.”

Ronald Stephen Barrott, founder & chair of Pro-invest Group added: “Our partnership with Aareal Bank is based on a shared commitment to pioneering sustainability in the real estate and hospitality sectors. Through Aareal Bank's Green Finance Framework, we've been able to make considerable advancements in energy efficiency and reduce the environmental footprint of our properties, setting new benchmarks in sustainability. Our achievements within this framework underscore our collective progress towards transforming the built environment for the better.”