$81.337 million financing secured by HFF for award-winning Fairmont Newport Beach hotel
NEWPORT BEACH, CA – March 13, 2017 – Holliday Fenoglio Fowler, L.P. (HFF) announced today that it has secured $81.337 million in acquisition/bridge financing for Fairmont Newport Beach, a 444-room, full-service, AAAA-Diamond award-winning hotel in the Southern California community of Newport Beach, California.
HFF worked on behalf of the borrower to place the three-year, floating-rate loan with Aareal Bank. Loan proceeds will be used to purchase the hotel and implement a property improvement plan that will include rebranding it as a Marriott Renaissance Hotel, Marriott’s upscale lifestyle hotel brand.
The 10-story Fairmont Newport Beach was completed in 1983 and renovated in 2007. The upscale hotel features 42,000 square feet of indoor and outdoor meeting and event space; an 8,000-square-foot spa; outdoor pool with cabanas; fitness center; tennis courts; 24-hour business center and two food and beverage options, the Citrus and AVO Bar + Restaurant. The rebranding process will include renovations of the lobby, guestrooms and restaurant and bar space. Situated on 7.3 acres at 4500 MacArthur Boulevard in Orange County, the Fairmont Newport Beach is located at the conflux of the coastal community of Newport Beach and the commercial core of Irvine, two of the nation’s largest master-planned urban communities. The hotel is proximate to 54 million square feet of office space, world-class retail and area attractions.
The HFF debt placement team representing the borrower was led by managing director James Fowler.
“The business plan to renovate the hotel into a full-service, upper-upscale brand that targets lifestyle-oriented business and leisure travelers makes perfect sense and should do exceeding well in this market,” Fowler said. “Not only will it upgrade the hotel to a more innovative distinctive style, it will plug this hotel into the strength of the Marriott reservations systems. A win-win all the way around.”
Holliday Fenoglio Fowler, L.P. (“HFF”), HFF Securities L.P. and HFF Securities Limited (collectively, “HFFS”) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 24 offices and is a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF.