A joint venture of funds has refinanced a new $215 million, five-year, fixed-rate term loan for the 1,408-key Philadelphia Marriott Downtown.
JLL's Hotels & Hospitality group represented the joint venture of funds managed by Oaktree Capital Management, a global investment manager, and Clearview Hotel Capital, a privately held hotel investment and advisory company, according to the news release. Barclays, Wells Fargo and J.P. Morgan were the lenders.
The hotel is the largest in downtown Philadelphia, and it is located in the Center City Neighborhood. The 1,198-key main tower was built in 1994. The 210-key Headhouse Tower was the passenger station and company headquarters for the Reading Terminal Train station from 1893 to 1984. The hotel has more than 93,000 square feet of meeting space with 72 venues, and it's the only hotel that directly connects with the Pennsylvania Convention Center.
CoStar data shows the joint venture acquired an 89% stake in the property in January 2014, paying hotel real estate investment trust Host Hotels & Resorts roughly $270 million. A news release from Host about the sale states the price was based on a $303.4 million valuation of the hotel.
The hotel underwent a major renovation between 2020 and 2023. Along with its guestrooms, the hotel has 75 signature suites, a 24-hour fitness center, an indoor pool, a lobby lounge, a restaurant and a new pub.