Real estate development firm Kam Sang Co. received a $128 million loan for its recently renovated JW Marriott Desert Springs Resort & Spa property in Palm Desert, California.
JLL’s Hotels & Hospitality Group arranged the five-year, interest-only loan from Goldman Sachs Bank USA that was used to repay loans taken to purchase the 286-acre property from Bethesda, Maryland-based hotel operator Host Hotels & Resorts Inc. in 2017.
The original financing from Morgan Stanley was scheduled to mature in February 2022. Los Angeles-based Kam Sang completed a $40 million renovation of the hotel in 2020 that added suites and upgraded the hotel's 884 rooms.
The resort, at 74855 Country Club Drive, has five swimming pools, two 18-hole golf courses, a tennis court, spa and 35 acres of streams, lakes and waterfalls. Desert Springs also has a 12,000-square-foot entertainment area and more than 234,000 square feet of meeting and event space.
The resort's restaurants include T&T Innovation Kitchen, Mikado Japanese Steakhouse, Blue Star Lounge and Rockwood Grill.
More than 40% of the Coachella Valley's hotel rooms are classified as luxury or upper upscale, according to CoStar Market Analytics.
The pandemic caused occupancies to fall to a monthly average of 24% across the market in April 2020, but conditions are improving and around 310,000 rooms were leased in December, a massive 135% increase from the same month in 2020, according to CoStar.
For the Record
Mike Huth and Shalin Patel of JLL Hotels & Hospitality represented the borrower in the financing.