JLL Arranges $450M Refinancing for Hyatt Regency Resort in Honolulu
HONOLULU — JLL has arranged a $450 million loan to refinance debt on the Hyatt Regency Waikiki Beach Resort & Spa in Honolulu.
Situated on a three-acre site, the hotel totals 1,230 rooms across two 40-story buildings with views of Waikiki Beach and downtown Honolulu. The resort features three dining venues, a spa, outdoor pool, 24-hour fitness center and 20,510 square feet of meeting space.
The property also houses the Pualeilani Atrium Shops to offer guests an onsite shopping experience. Hotel guests can also access weekly cultural activities such as lei making, ukulele and hula lessons and a day camp for children.
Guestrooms are furnished with flatscreen TVs, work areas and private balconies with mountain or beach views. Suites with separate living areas and wet bars are also available.
The property offers proximity to a number of key transit hubs and tourist destinations on the island. These include Daniel K. Inouye International Airport, the Honolulu Harbor cruise terminal, Kapiolani Park, the Royal Hawaiian Center and Waikiki Beach Walk Entertainment Center.
Kevin Davis and Mike Huth of JLL arranged the five-year, floating-rate loan on behalf of the borrower, South Korea-based Mirae Asset Global Investments. A consortium of lenders that included Deutsche Bank AG, New York Branch and Goldman Sachs Bank USA provided the interest-only debt.
“Historically, Oahu has been one of the highest revenue-per-available-room (RevPar) markets in the country,” says Huth. “It was incredible to witness the rapid return of demand from domestic markets over the summer in response to [COVID-19] vaccine availability and relaxed travel restrictions.”
“The hotel’s track record of consistent pre-pandemic performance, combined with the robust recovery that commenced earlier this year, generated strong interest among lenders,” adds Davis.
According to data from Tennessee-based research firm STR, Oahu Island’s hotel market had an average daily rate (ADR) of $208.85 per room during the four-week period that ended on Oct. 16, good for seventh place among major U.S. markets. In terms of RevPar, Oahu ranked 21st among markets tracked by STR during that four-week period with a mark of $101.23 per room.
— Taylor Williams