A USD 302 million CMBS loan secured by the Hyatt Regency Waikiki Beach Resort & Spa in Honolulu, Hawaii, has been transferred to special servicing. This occurred after the borrower failed to make a principal and interest payment that was due earlier this month. The corresponding report was issued by Morningstar Credit.
The loan, known as HONO 2021-LULU, represents a single-asset, single-borrower CMBS loan. It constitutes the remaining debt of an original USD 450 million loan that the owner, Mirae Asset Global Investments Company, a South Korean asset management firm, took out in 2021 to refinance the property.
Background to the Financing Problem
According to the special servicer, the four-star hotel was in negotiations for a sale at the time of the payment default. The Hyatt Regency Waikiki Beach, which opened in 1976 and is located at 2424 Kalākaua Avenue in Honolulu, Hawaii, is a luxury resort with two towers and also includes approximately 94,961 square feet of retail space.
The property's liquidity development raised concerns. The 2021 CMBS loan was calculated based on annual revenues of USD 36.7 million. In 2023, however, actual revenues did not exceed USD 25.9 million.
History and Market Value
Mirae Asset Global Investments Company acquired the property from Blackstone in September 2016 for USD 780 million. Bloomberg reported last year that Mirae expected to sell the hotel for just USD 650 million.
- —Property: Hyatt Regency Waikiki Beach Resort & Spa
- —Loan Volume: USD 302 million CMBS loan (HONO 2021-LULU)
- —Owner: Mirae Asset Global Investments Company
- —Location: 2424 Kalākaua Avenue, Honolulu, Hawaii
