Unable to sell off Hotel del Coronado last year, owner Blackstone Group has instead decided to refinance the iconic property.
According to the industry news publication National Mortgage News, New York-based Blackstone recently obtained $712 million in new debt by tapping the commercial mortgage bond market for a refinancing of the historic 757-room hotel.
The news publication cited data from credit research firm DBRS, indicating that Blackstone also contributed $586,981 in cash equity to cover closing costs. Blackstone will use proceeds from four new commercial mortgage bond-based loans to pay off $703 million in prior debt that it took out on the Coronado property.
Among the world’s largest private equity firms, Blackstone Group acquired a 60 percent interest in Hotel del Coronado in 2011, then in late 2015 acquired the full interest in a deal reported at approximately $1 billion.
Blackstone Group had planned last year to sell the 129-year-old hotel as part of a larger $6.5 billion nationwide portfolio deal to China’s Anbang Insurance Group Inc. But the transfer was apparently called off due to federal government concerns about the hotel’s proximity to local U.S. Navy bases.
In July, Hotel del Coronado became a Curio Collection by Hilton property, following a management switch to Hilton Hotels & Resorts. The original name remains intact at the hotel, located at 1500 Orange Ave.