Tishman Hotel & Realty and MetLife Ink $735M Refinancing Deal for Swan & Dolphin Resort

Tishman Hotel & Realty and MetLife Investment Management Secure $735 Million Refinancing for Walt Disney World Resort

A significant refinancing deal has been finalized by Tishman Hotel & Realty and MetLife Investment Management for the Swan & Dolphin Resort, located near Walt Disney World in Lake Buena Vista. The $735 million loan, provided by Bank of America, Wells Fargo, and Goldman Sachs, illustrates a potential upswing in the lending market. This five-year, floating-rate CMBS loan, facilitated by JLL, amounts to $250,000 per key for the 2,619-key resort. The successful acquisition of such a substantial loan is noteworthy, given the challenging lending environment that has negatively impacted commercial real estate sales and refinancing since last year. The Swan & Dolphin Resort, featuring over 452,000 square feet of event space and numerous amenities, has recently welcomed a third hotel—the Swan Reserve—to its grounds, which originally opened in 1989 and 1990. This refinancing news follows other nine-figure refinancings in Florida, highlighting the hospitality industry's ongoing recovery from the pandemic.

Key Takeaways

• Tishman Hotel & Realty and MetLife Investment Management secure a $735 million refinancing deal for Swan & Dolphin Resort near Walt Disney World.
• The five-year, floating-rate CMBS loan indicates an improvement in the tight lending environment for commercial real estate.
• The $250,000 per key debt highlights the resort's strong in-place cash flows, competitive position, and successful 35-year track record.
• The Swan & Dolphin Resort, featuring 2,619 keys, is the only non-Disney owned hotel on Walt Disney World grounds.
• Other Florida hotels have recently received nine-figure refinancings, suggesting the hospitality industry's ongoing recovery from the pandemic.

Analysis

The successful $735 million refinancing of the Swan & Dolphin Resort, led by Tishman Hotel & Realty and MetLife Investment Management, indicates an easing in the tight lending market for commercial real estate. This development, facilitated by JLL and financed by Bank of America, Wells Fargo, and Goldman Sachs, bodes well for other organizations seeking large-scale loans. The hospitality industry, hit hard by the pandemic, shows signs of recovery, with the Swan & Dolphin's strong cash flows and competitive position attracting substantial investment. Consequently, this refinancing could spur similar deals, bolstering the financial health of hotels and lending institutions alike. Meanwhile, Walt Disney World, housing the resort, could benefit from increased tourism and subsequent economic activity.

Did You Know?

• CMBS Loan: CMBS stands for Commercial Mortgage-Backed Securities. It refers to a type of mortgage-backed security that is secured by the loans on commercial properties rather than residential real estate. In this case, the Swan & Dolphin Resort refinancing deal involves a five-year, floating-rate CMBS loan. A floating-rate loan means that the interest rate resets periodically based on a benchmark like the prime rate or LIBOR (London Interbank Offered Rate).
• $250,000 per key debt: The $735 million loan is equivalent to $250,000 per key for the 2,619-key resort. This metric is used to evaluate the value of a hotel based on its number of rooms or keys. In this case, the high per-key debt indicates the resort's strong in-place cash flows, competitive position, and successful 35-year track record, allowing it to secure such substantial financing.
• Hospitality industry's ongoing recovery from the pandemic: The refinancing deal for the Swan & Dolphin Resort follows other nine-figure refinancings in Florida. This trend suggests that the hospitality industry is on the road to recovery from the pandemic downturn, as lenders become more confident in the sector's future performance and are willing to provide larger loans for hotel acquisitions and refinancing.