CHICAGO—Officials from Thor Equities say they have just secured a $420 million refinancing deal for the Palmer House Hilton. Thor acquired the historic, 1,642-room, 23-story luxury hotel in 2005 for $230 million.
JLL represented Thor Equities in refinancing the current $365 million loan, another refinancing deal completed in 2012, and was able to secure even more favorable terms with a lower interest rate. JP Morgan provided the 5-year floating-rate, CMBS loan. Overall, the deal provides Thor with a significantly more flexible loan structure and will also result in millions of dollars in savings per year, company officials say.
“Taking advantage of attractive interest rates and flexible loan terms is critical to creating a long-term successful business model in today’s hyper-competitive real estate market,” said Michael Schurer, chief financial officer of Thor Equities, in a prepared statement. He was not available for comment by press time.
Thor completed a renovation of the hotel in 2008. The $131 million project resulted in numerous infrastructure improvements, refurbished guestrooms, public spaces and meeting spaces and a number of food and beverage operations.