A $450-million refinance and an $89-million sale are among the transactions that took place on opposite ends of the country. Here’s a look:
JLL secures $450M refi for Hyatt Regency Waikiki Beach Resort & Spa
JLL’s Hotels & Hospitality Group has arranged a $450 million refinancing for the Hyatt Regency Waikiki Beach Resort & Spa, a 1,230-key resort in Honolulu.
JLL worked on behalf of the sponsor, Mirae Asset Global Investments Co. Ltd. to secure the five-year, floating-rate, interest-only loan, which was originated by Deutsche Bank AG, New York Branch and Goldman Sachs Bank USA.
The Hyatt Regency Waikiki Beach Resort & Spa features two 40-story twin towers that contain the majority of its 1,230 guestrooms and offer panoramic views of Waikiki Beach, Diamond Head and Downtown Honolulu. The resort has three dining venues, an outdoor pool, 24-hour fitness center, 20,510 sq. ft. of meeting space, the Na Ho’ola Spa and an 11-level parking garage. The towers sit atop a three-story podium, which is home to the Pualeilani Atrium Shops.
Located on a 2.97-acre site, the Hyatt Regency Waikiki Beach Resort & Spa is steps away from Waikiki Beach. The hotel is surrounded by a variety of upscale dining, luxury department stores and upscale boutiques situated on “Luxury Row” and is within walking distance of additional lodging demand generators, including Kapiolani Park, the Royal Hawaiian Center, Waikiki Beach Walk Entertainment Center and the Ala Moana Center.
The JLL Hotels & Hospitality team representing the borrower was led by Senior Managing Director Kevin Davis and EVP Mike Huth.
RLJ Lodging Trust acquires AC Hotel by Marriott Boston Downtown
RLJ Lodging Trust has acquired the fee simple interest in the recently constructed 205-room AC Hotel by Marriott Boston Downtown for a purchase price of $89 million, or approximately $434,000 per key. The purpose-built hotel opened in 2018 and is located within the mixed-use Ink Block development in Downtown Boston. Upon stabilization the hotel is expected to generate 7.5% to 8.0% NOI yield. The company funded the acquisition with existing cash on its balance sheet.
The AC Hotel Boston Downtown is located within the newly developed Ink Block hub, a mixed-use development in Boston’s South End neighborhood. The Ink Block development transformed the site of the former Boston Herald headquarters. As the only hotel in the four-phase development, the property is well-positioned to benefit from the significant growth of office and life science laboratory space in the immediate area, according to the company. As of the second quarter of 2021, approximately 4 million sq. ft. of office space and 1.7 million sq. ft. of laboratory space was under development within close proximity to the property. The hotel is also well-positioned to benefit from its proximity to two of the city’s top hospitals, Tufts Medical Center and Boston Medical Center. The Ink Block development is adjacent to the fast-developing Seaport District, which is home to a diverse base of corporate demand generators including Amazon, General Electric, Gillette, Reebok, PwC, Roche, Fidelity, AstraZeneca and Vertex.
Boston is expected to be one of the highest lodging demand growth markets in the country and is poised to benefit from the growth of life sciences, healthcare, technology, finance, education and government sectors, as well as tourism and conventions.
The AC Hotel by Marriott Boston Downtown offers sleek furnishings, curated artwork, and intuitive technology. Hotel amenities include the AC Lounge bar, AC Kitchen, AC Store, fitness center, approximately 2,500 sq. ft. of flexible and customizable meeting space, outdoor patios, on-site parking as well as car charging stations.
With the acquisition of the AC Hotel Boston Downtown, the company now owns three hotels in the Boston market and is expanding its overall brand collection to include lifestyle brands.
Harrison Group Resort Hotels & Restaurants purchases Hampton Inn Virginia Beach-Oceanfront South
Harrison Group Resort Hotels & Restaurants has added the Hampton Inn Virginia Beach-Oceanfront South in Virginia Beach, VA to their oceanfront hotel portfolio.
Harrison Group plans to undertake a multi-year renovation of the hotel property with a proposed completion of the guest rooms in Summer 2023 and the public space areas in summer 2024.
The hotel, situated directly on the Virginia Beach Boardwalk and Atlantic Ocean, is near local attractions, shops and dining, as well as the Virginia Beach Convention Center. The property has 141 oceanfront accommodations with direct views of the Atlantic coastline and Virginia Beach fishing pier and 1,791 sq. ft. of meeting and event space.