JLL Arranges $430M Refinancing for Fairmont Austin Luxury Hotel

Author

Slice of Real Estate Team
July 10, 2024

Key Highlights:

  • JLL Capital Markets secures $430M refinancing for Fairmont Austin.

  • Goldman Sachs acts as lead manager and sole bookrunner.

  • Refinancing replaces $300MM senior loan and $125MM mezzanine debt.

  • Fairmont Austin features 1,048 guestrooms, 140,000 sq ft of meeting space, and five dining outlets.

  • Strategic location near Austin Convention Center and entertainment areas.

Source (PR Newswire)

Notable Quotes:

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"This significant financing, facilitated by JLL and Goldman Sachs, underscores our commitment to delivering exceptional hospitality experiences through our 100% ownership of the hotel."

Papa Doug Manchester, Chairman at Manchester Financial Group
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"With an influx of recently completed and ongoing construction projects in the immediate area, Fairmont Austin is well-positioned to benefit from the momentum in all directions and capitalize on its position as the epicenter of Austin's explosive growth."

Tim Wright, Senior Managing Director at JLL Capital Markets
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"Despite today's challenging debt environment, capital markets responded well to the opportunity to finance this prime asset for a strong sponsorship group."

Olga Walsh, Director at JLL Capital Markets

Our Take:

The refinancing of Fairmont Austin by JLL's Capital Markets group highlights the strength and resilience of prime real estate assets even in a challenging debt environment. The luxury hotel, with its strategic location and extensive amenities, stands as a testament to Austin's burgeoning growth and appeal. The involvement of industry giants like Goldman Sachs underscores the confidence in this property's continued success. This move not only secures the hotel's financial stability but also sets the stage for further enhancements, ensuring it remains a top destination in Austin's competitive hospitality market.