Dealmaker: JLL Arranges $150M Fairmont San Francisco Refinance

JLL, Chicago, arranged a $150 million refinancing for the 606-key Fairmont San Francisco for borrower Mirae Asset Global Investments, Seoul, South Korea.

Fairmont San Francisco

United Overseas Bank, Singapore, supplied the five-year non-recourse loan.

“This transaction is one of several recent closings that illustrates the increased availability of debt for high-quality hotels with strong sponsorship and good pre-COVID performance,” said Kevin Davis, a Senior Managing Director in JLL’s Hotels & Hospitality Group. Davis heads the firm’s Hotel Investment Banking team.

Listed on the National Register of Historic Places, the Fairmont first opened in 1907. It has hosted every U.S. President since William Howard Taft and was the first hotel in the country to offer concierge service.

The property has undergone $16 million in renovations to public areas, guest rooms and infrastructure items since 2015. It contains 62 suites and more than 45,000 square feet of event space including a ballroom, retail outlets and restaurants.

The hotel suspended operations in April due to the pandemic but re-opened in September.

“Despite the challenges faced by the hotel sector, this financing opportunity was well-subscribed at various leverage levels,” said Mike Huth, an Executive Vice President with JLL’s Hotel Investment Banking team. “Ultimately, our client opted for a lower-leverage loan with a much lower interest rate.”