Trinity Investments and Oaktree Capital Management have announced a $515 million refinancing of The Westin Maui Resort & Spa, Kaanapali.
The funds managed by the two firms bought the 771-key luxury resort on Kaanapali Beach in Hawaii in 2017 for $317 million and have since invested $120 million in renovating and repositioning it.
The new debt pays off the existing $360 million loan on the hotel and was brokered by Eastdil Secured LLC.
The financing comes in at a 7.75% fixed interest rate, according to Morningstar and includes a $145 million cash-out for the sponsors. The four-year, fixed-rate loan is originated by Morgan Stanley Bank and German American Capital Corp.
“The resort’s strong performance following the completion of its renovation has generated interest among lenders, and we are pleased with the outcome of this refinancing in a challenging capital markets environment. We continue to believe in the strong performance of the Hawaiian hospitality market and our partner Trinity as our local operator,” Taejo Kim, managing director of Oaktree’s Real Estate Group, said in the news release announcing the new financing.
Renovations at the 12-acre property included "adding new and elevated food and beverage experiences, and enhanced pools and exclusive offerings, including the revamp of the resort’s former Beach Tower into the Hokupaa luxury tower," according to the news release.
This is the second major deal of the year for Honolulu-based Trinity, which purchased the Diplomat Beach Resort in Hollywood, Florida in February for $835 million through a joint venture with Credit Suisse.
