Financing deals for Knighthead, RobertDouglas, JLL and more

Financing deals for Knighthead, RobertDouglas, JLL and moreHotel Business | Hotel Business

The list of post-COVID transactions and financing deals continues to grow as companies are buying and refinancing properties around the country, including in Dallas, Boston and L.A.

Knighthead Funding provides $19M loan for Dallas Hotel
Knighthead Funding LLC has provided Napali Capital with a $19-million first mortgage loan for the acquisition of the 152-room Tru by Hilton hotel in Dallas.

The property is in close proximity to the Dallas Market Center, one of the world’s largest wholesale merchandise marts, as well as Trinity Groves, a 15-acre restaurant, retail, artist and entertainment destination complex. Proceeds from Knighthead’s loan will be used to acquire the property, complete upgrades to the property and provide working capital for the continued stabilization of the asset.

The building served as a bank for more than 20 years before being converted into a hotel in December 2020. Since opening, the hotel has experienced occupancy rates near 80%.

Napali Capital, whose management team has a successful history in the hospitality industry, acquired the property in July and engaged Aimbridge Hospitality to manage the asset. The sponsor’s business plan is to improve the current operations and strategically increase cash flow by upgrading food and beverage service, including the marketing of the hotel’s rooftop bar as a meeting spot.

RobertDouglas assists in three transactions
RobertDouglas participated in several recent hospitality investment transactions. They feature two debt financings totaling $128 million and a venture capital funding for the experiential lodging sector, which has been boosted by this summer’s resurgence of leisure travel in the U.S.

The company assisted Ashford Hospitality Trust in successfully refinancing its mortgage loan for the 390-room Hilton Boston Back Bay, which had a final maturity date in November 2022, with a best-in-class institutional balance sheet lender. The new, non-recourse loan totals $98 million and has a four-year initial term with a one-year extension option, subject to the satisfaction of certain conditions. The loan is interest only for the initial term with $500,000 quarterly amortization payments during the extension term, and it provides for a floating interest rate of LIBOR + 3.80%.

It also advised Collective Retreats, an experiential travel company that develops and operates luxury retreats in special and often secluded locations, in raising a $23-million Series C growth funding round led by New York-based investment firm Fireside Investments, outdoor marketplace Outdoorsy and several existing investors. In addition, Collective Retreats is also entering a new strategic partnership with Outdoorsy, which will combine Collective’s outdoor hospitality expertise and innovative guest experience programming with Outdoorsy’s technology platforms and global reach.

RobertDouglas assisted Braemar Hotels & Resorts in its purchase of the Mr. C Beverly Hills Hotel in Los Angeles for $65.4 million, along with five adjacent residences for $12.5 million. The acquisition was funded with approximately $30 million in cash, 2.5 million OP units, 500,000 warrants at a strike price of $6, and a $30 million mortgage loan.

Acquisition financing secured for waterfront Westin hotel in Downtown Tampa
JLL’s Hotels & Hospitality Group arranged acquisition financing for the Westin Tampa Waterside hotel located in downtown Tampa, FL.

JLL represented the borrower, a joint venture between Newbond Holdings and investment funds managed by an affiliate of Apollo Global Management, to secure the acquisition loan through New York Life Investors’ Structured Debt team. Ryan Doyle and John Lippman led the efforts on behalf of New York Life.

The Westin Tampa Waterside hotel is a waterfront asset in downtown Tampa. The hotel was first built in 1985 and has been well-maintained by previous ownership, with nearly $17 million—about $55,000 per key—invested in the property over the last few years. The hotel consists of 309 total keys and is located on about 1.5 acres, stands 12 stories tall and contains 22,920 sq. ft. of event space and 4,760 sq. ft. of meeting space. In addition, the hotel has an on-site restaurant, business center, fitness center, pool, marketplace and offers valet dry cleaning and 24-hour room service for guests.

The JLL Hotels & Hospitality team representing the borrower was led by Managing Director Mark Fisher and Senior Managing Director Kevin Davis.

HALL Structured Finance closes $51.1M bridge loan
Dallas-based HALL Structured Finance (HSF) has closed a new first lien bridge loan totaling $51.1 million for the refinance and renovation of the historic Benson Hotel in downtown Portland, OR.

There are plans to convert the hotel to a Curio Collection by Hilton. The project owner and operator is Seattle-based Coast Hospitality LLC, which purchased the hotel more than 30 years ago.

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