Thayer holds $70 million first close for sixth fund

Annapolis, Md.–based Thayer Lodging has held a first closing for its sixth institutional hotel fund, Thayer Hotel Investors VI, raising $70 million in equity commitments. The value-added/opportunistic fund was launched in March 2011 with a $300 million fundraising goal.

Similar to prior Thayer funds, Thayer Hotel Investors VI targets hotel investments in upper-upscale hotels in top 20 markets, particularly hotels at a significant discount to replacement cost. The fund is targeting returns at 20 percent gross IRR and 15 percent net. The firm will do extensive renovations, marketing repositioning, asset rebranding and operating cost reduction.

The fund's predecessor, Thayer Hotel Investors V, closed in June 2008 with $280 million in equity commitments. Thayer Hotel Investors V's final close was thelargest in the company’s history.In addition, Thayer Hotel Investors IV closed in March 2005 wit