Finance & DevelopmentFinanceJLL Refinances the Hyatt Regency Waikiki Beach Resort & Spa

JLL Refinances the Hyatt Regency Waikiki Beach Resort & Spa

LOS ANGELES—JLL’s Hotels & Hospitality Group announced that it has arranged a $450 million refinancing for the Hyatt Regency Waikiki Beach Resort & Spa, a 1,230-key resort along Kalakaua Ave., directly across from Waikiki Beach in Honolulu, Hawaii.

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 views of Waikiki Beach, Diamond Head, and Downtown Honolulu. The resort features three dining venues, an outdoor pool, a 24-hour fitness center, 20,510 square feet 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. The hotel offers weekly cultural classes, including lei making, ukulele, and hula lessons, as well as Camp Hyatt for children.

Located on a 2.97-acre site, the Hyatt Regency Waikiki Beach Resort & Spa is surrounded by a variety of dining, department stores, and 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. In addition, The Hyatt Regency has access to the Daniel K. Inouye International Airport and Honolulu Harbor cruise terminal.

The JLL Hotels & Hospitality team representing the borrower was led by Senior Managing Director Kevin Davis and Executive Vice President Mike Huth.

“Historically, Oahu has been one of the highest RevPAR markets in the country,” Huth said. “It was incredible to witness the rapid return of demand from domestic markets over the summer in response to 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,” Davis added. “This transaction is one of several recent SASB securitizations that illustrates a strong appetite for hospitality among bond buyers.”

JLL’s Hotels & Hospitality Group has completed more transactions than other hotels and hospitality real estate advisors over the last five years, totaling $83 billion worldwide. The group’s 350-strong global team in over 20 countries also closed more than 7,350 advisory, valuation, and asset management assignments.