POSTED: 01:30 a.m. HST, Nov 14, 2012
Goldman Sachs Group Inc. provided $1.85 billion in new debt for hotels owned by Kyo-Ya Hotels & Resorts LP, including the Sheraton Waikiki and the Palace Hotel in San Francisco.
The debt, provided by Goldman Sachs Mortgage Co., includes first mortgage and mezzanine loans, the New York-based company said in a statement Tuesday.
Cerberus Capital Management LP, which owns Kyo-Ya, was seeking in May to replace debt amassed in 2006, three people familiar with the transaction said at the time. A deal struck with Goldman Sachs failed to close last year.
Five of the Kyo-Ya hotels are in Hawaii, including the Westin Moana Surfrider and Sheraton Princess Kaiulani in Honolulu. Oahu has been outperforming other U.S. markets. This year through September, hotel occupancies on the island climbed to 86 percent, the highest of 25 U.S. markets tracked by Smith Travel Research Inc., based in Hendersonville, Tenn. That's up from 81 percent a year ago, the firm said.