CORONADO, CA—A partnership led by Blackstone Group LP and-based Strategic Hotels & Resorts Inc. has refinanced the historic Hotel del Coronado here for $475 million.
The 125-year-old hotel, which has hosted Presidents, professional athletes and Hollywood stars, is owned by Blackstone (60 percent), Strategic (34.5 percent) and KSL Resorts (5.5 percent). KSL also manages the 680-room property.
Under the terms of the agreement, the loan will bear interest at LIBOR plus 365 basis points and has an initial two-year term with three, one-year extension options available to the venture upon satisfying certainand other conditions. The loan will be interest only and not subject to amortization. JPMorgan Chase Bank, N.A. and Deutsche Bank Securities Inc. originated the financing.