September 12, 2016
A holding company for Sumitomo Mitsui Financial Group has issued $1.3 billion in financing to Kyo-ya Hotels & Resorts for four Hawaii hotels, totaling 3,461 rooms. The hotels are the Sheraton Waikiki, The Moana Surfrider, the Royal Hawaiian and the Sheraton Maui Resort & Spa.
According to a report issued by CBRE Hawaii, the new loan value is close to the portfolio’s acquisition price of two years ago. The loan proceeds are a good indication of the value appreciation underwritten by Sumitomo Mitsui, CBRE Hawaii said. The lender has assets of approximately $1.8 trillion.
The report also indicated that the transaction demonstrates offshore lenders are ready and willing to provide liquidity for Hawaii hotel transactions.
For comments, questions or concerns, please contact Amy Sorter