SE Connecticut News

Connecticut-based Shelter Growth Capital Partners is not responding to accusations that the investment managing group is selling out.

SG Capital Partners, which owns the controlling position in many securitized commercial mortgage-backed securities (CMBS) hotel loans, is marketing portfolios of these controlling positions to funds that will take the assets from borrowers. The hotel industry has been hit particularly hard by the COVID-19 pandemic and the resulting economic fallout. 

Dan Sparks, CEO and founding partner of SG Capital Partners, did not respond to questions from SE Connecticut News about why the group is selling these portfolios and is not helping struggling hotel owners.

The coronavirus pandemic and resulting impact on the hospitality industry has left many Connecticut hotel owners, many of whom have invested their life savings into their businesses, struggling to pay back loans. Many hotel owners have been adhering to health guidelines and recommendations and showing support for healthcare workers during the crisis. 

It is rumored that SG Capital Partners is not working with hotel borrowers because a potential buyer of their loans wants to make the decisions. The company did not respond to questions about whether the group is in trouble financially or whether it is the group's intent to profit off of the misfortune of the hotel industry.