Park Hotels & Resorts has repaid the $1.275 billion CMBS loan secured by the Hilton Hawaiian Village Waikiki Beach Resort.
The repayment was funded with proceeds from Park's $700 million delayed-draw Bonnet Creek mortgage financing and a $600 million draw from its delayed-draw term loan facility. The HHV Mortgage Loan was scheduled to mature on Nov. 1. Following the transaction, Park has extended its weighted-average debt maturity by approximately 1.5 years to 3.1 years (including all extension options), with less than 11 percent of its total debt maturing through 2027.
"We are extremely pleased to have successfully repaid the Hilton Hawaiian Village CMBS loan, an important milestone that further strengthens our balance sheet and enhances our financial flexibility," Thomas J. Baltimore, Jr., chairman and chief executive officer of Park, said in a statement. "This transaction meaningfully extends our debt maturity profile while unencumbering one of the most iconic and irreplaceable resort assets in the world. With Hilton Hawaiian Village now unencumbered, we have significantly greater strategic flexibility to pursue opportunities that enhance long-term shareholder value. We are grateful for the continued support of our banking partners, whose confidence in our portfolio and business strategy helped facilitate these transactions and underscores the strength of our financial position."