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Hotspur Completes $155M Refi of JW Marriott Resort

LAS VEGAS-The short-term, floating rate loan represents 60% of the value of the asset, which Hotspur Nevada Resorts Inc. purchased out of bankruptcy in late 2001 for $80 million and then spent an additional $20 million rebranding and repositioning.

By Brian K. Miller | Updated on March 01, 2005

LAS VEGAS-Hotspur Nevada Resorts Inc. has closed on its refinance of the JW Marriott Las Vegas. The $155-million, Libor-based, floating-rate loan was provided by Credit Suisse First Boston and will be part of a larger securitization later this year. The loan term is five years, including extension options.The financing represents 60% of the value of the asset, which Hotspur Nevada Resorts Inc. bought out of bankruptcy in September 2001 for $80 million and proceeded to spend $20 million repositioning and rebranding the hotel-casino. As a result, the under performing Regent Summerlin Resort, built at a cost of about $300 million, is now the JW Marriott Las Vegas Resort & Spa at Summerlin, a 541-key, five-star hotel with a 40,000-sf spa, meeting facilities and about 60,000 sf of casino space. The financing was sourced by Sonnenblick-Goldman Co. S-G managing director Robert Stiles, head of the firm’s West Coast operations, tells GlobeSt.com the repositioning, meant to attract more corporate group business, significantly raised the cash flow from the property and, thereby, the value of the asset, allowing the owner to recapture the equity it invested in the property and then some. Stiles adds that when hotel clients utilize a floating rate financing like this, it is generally because there is still significant upside to be had in the asset and they want the flexibility to refinance in the future and capture it. “This asset falls into that category,” he says. “There is still enormous upside, which should be achieved over the next couple of years.”

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