Bain Capital and Smith Hill Capital, the integrated commercial real estate debt investment management business of Procaccianti Companies, completed a $94 million refinancing for the renovation and rebranding of a 281-key hotel to be reimagined as Hotel Cala under the Curio Collection in the Hilton family.
The seven-story hotel is located directly on the Hillsborough River in Downtown Tampa’s Riverwalk District, one of the few hotels with direct Riverwalk access and immediate proximity to the city’s primary business, convention and entertainment demand drivers.
“The Hotel Cala is an exceptional property that benefits from both premier sponsorship and a strong location in the dynamic lodging market of Tampa, Fla. The property’s direct location on the Riverwalk makes it a centralized asset for both business and leisure travel,” Brendan McCormick, co-founder and managing principal, Smith Hill Capital, said in a statement. “Together with Bain Capital, we continue to pursue opportunities in premier urban and destination markets where we see consistent demand and long-term value creation potential.”
The refinancing was completed via a joint venture between Bain Capital and Smith Hill focused on serving the financing needs of hospitality companies and assets in demand-driven markets across the U.S.
“This transaction is emblematic of our approach to partnering with institutional sponsors in premier markets to support the growth of high-quality assets,” said Mark Gormley, a managing director a Bain Capital. “We believe Hotel Cala fills a void in the marketplace for a hotel that appeals to both leisure and business travelers and look forward to continuing to serve as a value-added partner to the property’s ownership group as they execute their growth plans.”
In conjunction with this transaction, the property’s ownership group is investing significant new capital into a comprehensive renovation and repositioning of the former Sheraton, transforming the property into Hotel Cala, a Curio Collection by Hilton. The project will deliver fully redesigned guestrooms, reimagined meeting and event spaces, enhanced waterfront public areas, façade, and a destination pool deck.