Dealmaker: JLL Secures $450M for Hyatt Regency Waikiki Beach Resort & Spa

JLL, Chicago, arranged $450 million to refinance the Hyatt Regency Waikiki Beach Resort & Spa in Honolulu, Hawaii.

JLL represented sponsor Mirae Asset Global Investments Co. Ltd., Seoul, South Korea. It secured the five-year floating-rate interest-only loan from Deutsche Bank AG’s New York Branch and Goldman Sachs Bank USA, New York.

The Hyatt Regency Waikiki Beach Resort & Spa has twin 40-story towers housing 1,230 guestrooms with views of Waikiki Beach and downtown Honolulu. The towers sit atop a three-story podium that houses the Pualeilani Atrium Shops.

Located on nearly three acres at 2424 Kalakaua Avenue, the Hyatt Regency Waikiki Beach is surrounded by upscale dining, department stores and boutiques in the Luxury Row shopping district. Nearby lodging demand generators include Kapiolani Park, the Royal Hawaiian Center, Waikiki Beach Walk Entertainment Center and the Ala Moana Center.

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

“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.” 

Davis noted 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. “This transaction is one of several recent single asset-single borrower securitizations that illustrates a strong appetite for hospitality among bond buyers,” he said.