Phillips Realty Capital Structures $63 Million for Ohana Waikiki Malia Hotel in Honolulu

USA, Bethesda, Maryland. February 11, 2019

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.


Tags: hotel financing, Phillips Realty Capital

About Phillips Realty Capital

Media Contact:

Jan Hyland
Communications Consultant
Phillips Realty Capital
T: 703-801-8474
E: jan.hyland@jhycom.com
W: http://www.phillipsrealtycapital.com

Subscribe to our newsletter
for more Hotel Newswire articles

Choose a Social Network!

The social network you are looking for is not available.

Close
Coming up in August 2019...

Food & Beverage: Millennial Chefs Lead the Way

Led by Millennial chefs, hotels continue to foster sustainability, sourcing and wellness within their dining rooms and banquet spaces, and by all measures, this is responsible for an increase in their revenues. In many hotels, the food & beverage division contributes 50 per cent or more to hotel sales and they are currently experiencing double-digit growth. As a result, hotel owners are allocating an increasing amount of square footage for F&B operations. The biggest area of investment is in catering, which is thriving due to weddings, social events and business conferences. Hotels are also investing in on-site market or convenience stores that offer fresh/refrigerated foods, and buffet concepts also continue to expand. Other popular food trends include a rise of fermented offerings such as kombucha, kimchi, sauerkraut, tempeh, kefir and pickles - all to produce the least processed food possible, and to boost probiotics to improve the immune system. Tea is also enjoying something of a renaissance. More people are thinking of tea with the same reverence as coffee due to its many varieties, applications and benefits. Craft tea blending, nitro tea on tap and even tea cocktails are beginning to appear on some hotel menus. Another trend concerns creating a unique, individualized and memorable experience for guests. This could be a small consumable item that is specific to a property or event, such as house-made snack mixes, gourmet popcorn, macaroons, or jars of house-made jams, chutneys, and mustards -all produced and customized in house. One staple that is in decline is the in-room minibar which seems to have fallen out of favor. The August issue of the Hotel Business Review will document the trends and challenges in the food and beverage sector, and report on what some leading hotels are doing to enhance this area of their business.