NEWPORT BEACH, CA—Holliday Fenoglio Fowler L.P. (HFF) has secured $81.337 million in acquisition/bridge financing for Fairmont Newport Beach, a 444-room, full-service hotel here.
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 Renaissance Hotel. The rebranding process will include renovations of the lobby, guestrooms, restaurant and bar space.
The 10-story property was completed in 1983 and renovated in 2007. It has 42,000 sq. ft. of indoor and outdoor meeting and event space; an 8,000-sq.-ft. spa; outdoor pool with cabanas; fitness center; tennis courts; 24-hour business center and two F&B options, the Citrus and AVO Bar + Restaurant.
HFF Managing Director James Fowler led the debt placement team representing the borrower.
“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.”