JLL’s Hotels & Hospitality Group has arranged a $136 million refinancing for the Fairmont Orchid, a 540-key resort on Hawaii Island.
JLL worked on behalf of the borrower, Mirae Asset Global Investments Co., to secure a five-year, fixed-rate loan through New York Life Real Estate Investors.
“We are pleased to have closed the financing of the Fairmont Orchid, a premier luxury full-service resort,” James Nearon, senior director of NYLREI’s West Coast originations team, said in a statement. “This transaction underscores New York Life Real Estate Investors’ capability to structure and execute financing solutions on high-quality hospitality assets. The strong sponsorship of Mirae Asset Global Investments and attractive market fundamentals made this a compelling opportunity that fits nicely within our broader lending strategy.”
The Fairmont Orchid takes up 32.6 oceanfront acres along the Kohala Coast. The full-service property has a crescent-shaped white sand beach fronting Pauoa Bay, a 10,000-square-foot oceanfront pool, 108,000 square feet of meeting space, a full-service spa, a fitness center, retail shops and a ten-court tennis facility. It also has seven on-site food and beverage outlets, including Brown's Beach House restaurant.
As part of the 3,200-acre Mauna Lani Resort community, the resort provides access to a championship golf course, shopping and ancient Hawaiian sites. The resort is less than 30 minutes from Kona International Airport.
The property owner, Mirae Asset Global Investments Co., a globally recognized real estate investor with over $267 billion under management, is undertaking a multiyear, $110 million renovation project, with Phase 1 scheduled for completion this year.
The JLL Hotels & Hospitality team was led by Americas CEO Kevin Davis, Managing Director Mike Huth, Senior Associate Maddie Blount and Analyst Jade Lewin.
"The Fairmont Orchid's prime oceanfront location, strong cash flow and recent renovations generated significant lender interest," Davis said. "The financing terms secured not only reflects confidence in the asset but also in the continued strength and resilience of Hawaii's luxury hospitality sector."