CBRE Arranges Financing for Construction of a $135 Million Hotel development in Hawaii

CBRE has secured construction financing and JV equity for a 240-room dual-branded Hyatt Place and Hyatt House Hotel in Ewa Beach, Oahu, Hawaii. The project cost is approximately $135 million.

Bruce Francis, Bob Ybarra, Shaun Moothart, Doug Birrell, Nick Santangelo, Amber Coleman and Jim Korinek, with CBRE's Capital Markets Debt and Structured Finance team, secured the financing on behalf of Alaka'i Development, a Hawaii-based commercial real estate developer.

A bank provided the senior construction loan, while a correspondent life insurance company provided mezzanine financing, bringing the overall construction financing to approximately 72% loan to cost. In addition to arranging the construction debt, the CBRE team also sourced the JV equity partner on behalf of the developer to fill the remainder of the capital stack.

The dual-branded hotel will be located on 3.49 acres at 91-3456 Nana Hope Street in Ewa Beach, within the Ho’opili master-planned community. The property will feature 108 Hyatt Place rooms and 132 Hyatt House extended-stay rooms, 19 of which include balconies and 86 kitchenettes. The five-story building will include an outdoor swimming pool and spa, 3,009 sq. ft. of meeting space, a dining room, a business center and a fitness center.

The Hawaii hotel market continues to have a high demand for rooms, with revenue per available room (RevPAR) exceeding 2019 by 10%, according to Kalibri Labs.