Newbond Holdings and Apollo are looking to revitalize their Tampa, Florida, hospitality asset, Hotel Cala. To support those efforts, the developers have landed a $94 million loan from Bain Capital and Smith Hill Capital.
Newmark arranged the financing, which was led by Jordan Roeschlaub, co-president of global debt and structured finance; Ricky Braha, senior managing director; Nick Scribani, vice chairman; Tyler Dumon, managing director and Tate Keir, associate.
Under the repositioning strategy of the 281-key property, Newbond and Apollo plan to transform it into a luxury lifestyle hotel. The renovations will include upgrades to the meeting spaces, guestrooms and amenity offerings.
Additionally, the move will result in Hotel Cala rebranding to the Curio Collection flag, which operates under Hilton's luxury hotel portfolio. Formerly, the seven-story property was branded as Hotel Tampa Riverwalk, as the asset is known for providing direct waterfront access.
The Downtown Tampa asset is within walking distance of the Tampa General Hospital, Tampa Convention Center and the Benchmark International Arena. Also, the site is near almost 7 million square feet of Class A office space and the Water Street development, which Cascade Investment is pouring $3.5 billion into.
During the first quarter, Crexi Auction reported that hospitality was a standout. The sector accounted for 72% of the total auction volume in the three-month period and delivered the highest bidder intensity across all asset classes, averaging 21.1 bids per deal. Moreover, one specific hospitality asset drew as many as 63 bids, underscoring competitive pressure for operational upside and recovery plays.
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