Oaktree, Trinity score $515M CMBS deal on Westin Maui resort

Oaktree Capital Management and Trinity Investments have scored a $515 million loan to refinance their Westin Maui resort in Hawaii. 

The two firms closed a commercial mortgage-backed securities deal on the 771-key resort, which sits on Kaanapali Beach, according to a release this week and documents from DBRS Morningstar.

The four-year, fixed-rate loan has an interest rate of 7.75 percent, according to DBRS Morningstar. Morgan Stanley originated $309 million in the deal, while Deutsche Bank gave $206 million — all of which was then securitized into a CMBS deal. 

Part of the loan proceeds will be used to distribute equity back to shareholders, according to Morningstar. The rest will go toward closing and repaying existing loans on the property.

The hotel has an appraised value of $918.9 million, according to Morningstar. Oaktree and Trinity finished $121 million in renovations on the property in 2021 and are now spending another $39 million to renovate one of the hotel’s towers. 

Oaktree and Trinity own the leasehold interest in the property — the ground lease expires in 2086. 

After the 2021 renovations, the hotel has doubled its average daily rate at one of the property’s two towers and by 72 percent at the other. 

According to online booking websites, the hotel is asking upward of $800 per night in October.

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