Phillips Realty Capital Structures $63 Million for Ohana Waikiki Malia Hotel in Honolulu
Phillips Realty Capital announced that a $63,000,000 transaction on behalf of Lucky Hotels USA has closed and funded. Benefit Street Partners provided fixed-rate permanent financing secured by the 327-room OHANA Waikiki Malia Hotel located in Honolulu, Hawaii. The financing was structured by John R. Sieber, Jr., CMB, a Principal at Phillips Realty Capital. Aaron Derby, Managing Director, Originations at Benefit Street Partners, represented the lender.
Managed by Outrigger Hotels and Resorts, the property is located in the Waikiki Resort District just three blocks from the beach at 2211 Kuhio Avenue. The Hotel consists of two towers built in 1960 and 1980 and underwent a$6.2M renovation in 2010 to update the rooms, lobby, and common areas. Amenities are geared towards family and group travelers with connecting rooms and one-bedroom units with kitchenettes. Visitors are just steps from Kalakaua Avenue's "Luxury Row," a renowned shopping and international travel destination.
"We sought out a lender with deep understanding of Hawaii's hospitality market," Sieber said. "Benefit Street's experience in the market helped them to see the value of a long-term owner with near-term plans for capital upgrades that position the property well for the future."
"Working with the Phillips team gave us high confidence in the underwriting. Their attention to detail facilitated a timely and seamless closing," said Derby.