Destination Capital (DC) is excited to announce the launch of Descap I which will be the world’s first “green hotel fund”. The fund will acquire hotels and implement EDGE sustainability systems and procedures to support long term environmental sustainability and the financial viability of the investments. EDGE is an online platform, a green building standard, and a certification system for more than 170 countries.
The objective of Descap I is to raise capital and financing to acquire freehold four-star hotels in prime destinations in Thailand. Each hotel will implement EDGE building standards and obtain Edge “green building” certification. Some hotels will be rebranded to elevate positioning and value to generate further investor returns. Descap I will utilize the experience gained by Destination Group with its 24-year track record in Thailand of buying, managing, and selling hotels, particularly during times of distress.
“Destination Capital’s adoption of the EDGE certification program will provide the Descap I with the opportunity to gain a competitive advantage by differentiating our products and improving carbon emissions of the hotels” said Mr. James A. Kaplan, CEO of Destination Capital.
DC sees opportunities to re-tool hotels to accommodate green EDGE technology and systems especially during the current Covid 19 economic downturn. This is viewed as being highly attractive to hotel guests post-COVID 19 due to their preference to frequent hotels which adopt sustainability programs and offer a better guest experience in a safe and hygienic environment.
“If there is one thing we have learned during COVID 19 it is that the environment and nature recover quickly from poor resource management practices. Our participation in EDGE will serve to encourage the hospitality industry to adopt best practices with respect to better managing our scarce resources, raise broader consciousness about global warming and stem the tide of environmental degradation.“ Mr. Kaplan, added “we will implement operational elements to reduce water consumption, reduce waste emissions, reduce electricity use, and to the best of our ability eliminate plastic usage.”
DC is committed to investing in EDGE standards believing that it not only makes good business sense with both shorter payback periods and significant long term savings in hotel operational costs but also acknowledges investors who contribute to green and sustainable practices which benefit communities and the surrounding environment.
An innovation of the International Finance Corporation (IFC), a member of World Bank group, EDGE helps property developers to build and brand green in a fast, easy, and affordable way.
“Descap I will be the first hotel fund globally to adopt EDGE,” said Prashant Kapoor, IFC Chief Greenbuilding Specialist. “Our success with the EDGE certification to date is growing with its collective ambition to mainstream green buildings and help fight climate change.”