Peachtree Group Secures C-PACE Financing for Texas Hotel Redevelopment

The $11 million in funding will convert the existing MCM Elegante Hotel into a dual-branded Marriott property.

Apr. 2, 2026 at 12:00pm

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Peachtree Group has closed on $11 million in Commercial Property Assessed Clean Energy (C-PACE) financing to redevelop the MCM Elegante Hotel in Beaumont, Texas. The project will convert the existing property into a 287-key, dual-branded Marriott hotel featuring a Courtyard and an Element. The renovations will include energy-efficient upgrades such as a new building envelope, windows, HVAC systems, lighting, and plumbing.

Why it matters

C-PACE financing plays a critical role in helping hotel owners fund energy-efficient renovations that might otherwise not be financially viable. This project will breathe new life into an existing hotel asset while also delivering substantial operational benefits through reduced energy and water consumption.

The details

The MCM Elegante Hotel will remain open during the 18-month renovation process. The Courtyard will feature 135 rooms, while the Element will include 152 extended-stay rooms. The C-PACE financing will fund a comprehensive package of upgrades, including high-efficiency building envelope improvements, new windows, enhanced HVAC systems, upgraded lighting, and improvements to domestic hot water systems and low-flow plumbing. These upgrades are expected to deliver a 29% reduction in annual energy consumption, a 39% decrease in water usage, and a 30% reduction in natural gas use.

  • The $11 million in C-PACE financing was closed in April 2026.
  • The renovation project is expected to take approximately 18 months to complete.

The players

Peachtree Group

A real estate investment and management firm that closed the $11 million in C-PACE financing for the MCM Elegante Hotel redevelopment project.

Lone Star PACE

The organization that provided the C-PACE financing for the project, helping to make the energy-efficient renovations financially viable.

Marriott International

The hotel brand that will operate the dual-branded Courtyard and Element properties after the redevelopment is complete.

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What they’re saying

“C-PACE plays a critical role in helping owners close the gap on projects that otherwise would not pencil in today's environment. We're seeing more situations where strong assets are held back by capital constraints, not fundamentals. By offering a lower overall cost of capital option, C-PACE allows sponsors to move forward with renovations that might otherwise be delayed or shelved.”

— Robert Loeb, Assistant VP of Originations, Peachtree Group

“C-PACE continues to play a critical role in repositioning and revitalizing hospitality assets across Texas.”

— Lee McCormick, President, Lone Star PACE

What’s next

The renovated MCM Elegante Hotel is expected to open as a dual-branded Courtyard and Element property in late 2027 or early 2028.

The takeaway

This C-PACE-funded redevelopment project demonstrates how innovative financing can help hotel owners overcome capital constraints and invest in energy-efficient upgrades that improve the long-term sustainability and competitiveness of their properties.