Sunstone Refinances $220M Loan for Hilton SD Bayfront
- Nov 15, 2017
Sunstone Hotel Investors Inc. has refinanced the existing $220 million mortgage loan secured by the Hilton San Diego Bayfront with a new $220 million mortgage loan.
The interest-only loan offers a three-year initial term and three one-year extension options. It provides for a floating interest rate of LIBOR plus 1.1 percent with a 25 basis point increase during the final one-year extension period, if extended. The loan is expected to reduce the company’s consolidated annual cash interest expense by $2.6 million. This replaces the existing loan that was scheduled to end in August 2019 and had a floating interest rate of LIBOR plus 2.3 percent.
The Hilton San Diego Bayfront is owned by a joint venture between subsidiaries of Sunstone and Park Hotels & Resorts Inc., with Sunstone owning a 75 percent interest in the joint venture.
Located at 1 Park Blvd., the 1,190-key hotel features a business center, meeting rooms, car rental desk, electric car charging stations, clothing store, gift shop, fitness room, pool, sight seeing tours, three restaurants, Starbucks, Sweet Things frozen yogurt bar and full-service spa.
Image courtesy of Public Domain Pictures