JLL Secures $735 MillionRefinancingfor Swan & Dolphin Resort

JLL's Hotels & Hospitality group arranged a $735 million, five-year floating-rate SASB CMBS term loan for the Swan & Dolphin Resort, a 2,619-key Marriott-branded hotel complex adjacent to Walt Disney World. The loan, provided by Wells Fargo, Bank of America, and Goldman Sachs, represents a significant deal for the hospitality sector.

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Bijay Laxmi
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JLL Secures $735 MillionRefinancingfor Swan & Dolphin Resort

JLL Secures $735 MillionRefinancingfor Swan & Dolphin Resort

In a major financial deal for the hospitality sector, JLL's Hotels & Hospitality group has arranged a $735 million, five-year floating-rate SASB CMBS term loan to the Swan & Dolphin Resort, a 2,619-key Marriott-branded hotel complex adjacent to Walt Disney World in Lake Buena Vista, Florida. The loan, provided by Wells Fargo, Bank of America, and Goldman Sachs, represents a significant uptick in lending for top-tier hospitality assets, even amidst a challenging environment marked by stringent lending conditions.

Why this matters: Thisdeal signals a potential shift in the lending environment for hospitality assets, which could have a ripple effect on the entire industry. The successful refinancing of the Swan & Dolphin Resort also underscores the resilience of the hospitality sector, paving the way for other properties to secure financing and revitalizing the broader market.

The Swan & Dolphin Resort, owned by a joint venture between Tishman Hotel & Realty andMetLife Investment Management (MIM), is the only non-Disney-owned hotel located on the grounds of Walt Disney World. The iconic resort, designed by renowned architect Michael Graves, comprises three Marriott-branded hotels: the 756-key Swan Sheraton, the 1,514-key Dolphin Westin, and the 349-key Swan Reserve Autograph Collection.

The expansive property offers extensive meeting and event facilities, including over 452,000 square feet of meeting and event space, eight ballrooms, 99 meeting rooms, and 100,000 square feet of outdoor space. Kevin Davis, CEO of JLL's Hotels & Hospitality Group Americas, emphasized the significance of the deal, stating, "The Swan Dolphin Resort SASB CMBS loan priced at the tightest pricing levels seen for hotels since 2021. The market pricing was an affirmation of the strong in-place cash flows, the unique competitive position for the Resort, and the incredible 35-year track record that Tishman and MIM have created in Orlando."

The successfulrefinancingof the Swan & Dolphin Resort underscores the unique value and strong cash flow potential that top-tier hospitality assets can command, even in tough times. The deal breaks down to $250,000 per key for the 2,619-key resort, setting a significant benchmark for the hospitality industry and signaling a potential shift in the lending environment. It also highlights the sector's recovery trajectory post-pandemic, paving the way for other properties to secure financing and revitalizing the broader market.

The Swan & Dolphin Resort'sdeal marks a notable achievement for JLL's Hotels & Hospitality Group, which has completed more transactions than any other hotels and hospitality real estate advisor over the last five years, totaling $83 billion worldwide. The deal serves as a testament to the resilience and potential of the hospitality sector, even in the face of unprecedented challenges, and reinforces the Swan & Dolphin Resort's position as a premier destination in the heart of Walt Disney World.