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CMA
December 01, 2017  

JP Morgan Lands $475 Million Hotel Floater

J.P. Morgan has agreed to supply $475 million of floating-rate debt on the Hilton Orlando.

The bank will likely securitize the senior portion of the debt package on the 1,417-room property, which is owned by a partnership among Ares Management of Los Angeles, RIDA Development of Houston and Park Hotels & Resorts of McLean, Va. Eastdil Secured is advising the group.

The Ares partnership, which built the hotel in 2009, would use most of the proceeds to retire a $375 million of floating-rate debt that UBS and Wells Fargo originated in 2014. That interest-only debt package has a two-year term and five one-year extension options, two of which have already been exercised.

UBS and Wells securitized the $345 million senior portion, pegged to one-month Libor plus 201 bp, via a stand-alone deal (HILT 2014-ORL). The $30 million mezzanine tranche has a coupon of Libor plus 625 bp. The Ares team used the proceeds to retire construction debt.

The hotel is at 6001 Destination Parkway, next to the Orange County Convention Center and about 13 miles west of Orlando International Airport. Nearby tourist destinations include Walt Disney World Resort, SeaWorld Orlando and Universal Orlando Resort.

The property’s amenities include two swimming pools with a “lazy river” and a water slide, private rental cabanas, a nine-hole putting green, a tennis court, a fitness center and several restaurants and bars.