Oaktree and Trinity Secure new $515 million CMBS loan on Westin Maui Ka'anapali
https://www.businesswire.com/news/ho...aui-Resort-Spa- The loan is a 4 year, 7.75%
- Oaktree and Trinity acquired the property from Marriott/Starwood for $317 million in 2017
- Competed a $120 million renovation in 2021
- Completing another $39 million tower renovation this year
- The property was appraised at $919 million as part of the deal
- There was a $360 million loan on the property
- Oaktree and Trinity spent about $116 million in equity, and will cash out about $155 million in equity with this refinancing
- Based on appraised value, Oaktree and Trinity will still have over $400 million (!) in equity in the hotel
- Room rates have doubled in the past five years
Debt service on the $515 million loan is about $40 million a year. A comparable where we have public information would be the Hyatt Regency Maui, which is an 810 room hotel that did $82 million in earnings before interest, taxes, depreciation and amortization. The Hyatt Regency's average room rate was $525 in 2022. I would guess the Westin Maui's is a bit higher. Nevertheless, to be conservative, I will assume about $1 million in EBITDA per room, which would equate to about $77 million in EBITDA for the Westin Maui, which gives them ample room to pay that $40 million a year in interest, plus maybe $5 million to $10 million in annual soft goods refurbishment. A home run deal, even with an 8% interest rate