At a glance
- The borrower is a joint venture between affiliates of Certares Real Estate Management and Clearview Hotel Capital, and the floating-rate loan comes from Real Estate at Goldman Sachs Alternatives at a moment when the forward curve points down.
- The hotel's cash flow leans on group business—40,564 square feet of meeting space across eight venues, including the 11,000-square-foot Harborside Ballroom that seats 1,300—and RevPAR matters at the sale.
- The property also carries 31 suites, a full-service restaurant and bar, an indoor pool, a fitness center and 300 on-site covered parking spaces, all details a lender can point to at the next sale but not the underwrite.
JLL Capital Markets has arranged acquisition financing for the Hyatt Regency Savannah, a 351-key full-service hotel on the Savannah River in the city's nationally designated Historic District, according to Connect CRE. The borrower is a joint venture between affiliates of Certares Real Estate Management and Clearview Hotel Capital, and the floating-rate loan comes from Real Estate at Goldman Sachs Alternatives at a moment when the forward curve points down. Ashford Hospitality Trust sold the property for $158 million, roughly $450,000 a key, and the financing that replaced that equity is a bet on the short end more than on the hotel itself.
The hotel's cash flow leans on group business—40,564 square feet of meeting space across eight venues, including the 11,000-square-foot Harborside Ballroom that seats 1,300—and RevPAR matters at the sale. But the financing's risk sits in the rate: floating-rate paper is a wager that the short end compresses before this loan needs to be refinanced, and the joint venture is paying for that optionality while Goldman's alternatives platform is paid to take it.
The property also carries 31 suites, a full-service restaurant and bar, an indoor pool, a fitness center and 300 on-site covered parking spaces, all details a lender can point to at the next sale but not the underwrite. On a single-asset hotel, the loan is only as good as the path of short rates: if the Fed cuts, this structure looks smart; if it holds, the spread does the work.
JLL's hotels desk—Kevin Davis, Andrew Dickey, Mark Fisher and Pierce Rutledge—ran the placement for the borrower. The assignment lands a day after the same firm announced its $856 million dual-tranche refinancing for Winthrop, pricing condos as a 20-year assessment and offices as a five-year securitized bet; that mandate leaned on tenor choice and securitization, while this one leans on a single asset and a floating coupon.
The coverage does not state the loan's size, term or spread, so the full shape of the bet remains unconfirmed; the lender chose to be paid in basis points and the buyer chose to carry them, defensible at current forward pricing, costly if the curve re-steepens.
Reported by the Real estate debt desk from Connect CRE. Published . Corrections