Strategic Hotels & Resorts Inc. has closed on a $90 million, five-year loan refinancing agreement with MetLife, secured by the Hyatt Regency La Jolla hotel.
A statement from Chicago-based Strategic Hotels said the company, with a joint-venture partner, has entered into an agreement in which a $97.5 million mortgage on the property will be replaced with a $72 million A-note and an $18 million B-note, maturing Nov. 1, 2017.
In addition to reducing the loan principal by $7.5 million, the joint venture contributed $12 million to a capital reserve to fund planned improvements at the property, including a comprehensive renovation of guest rooms, bathrooms and corridors.
Strategic Hotels, which owns 53.5 percent of the joint venture, contributed $10.8 million as its share of the capital requirement, the company said.
Strategic Hotels & Resorts is a real estate investment trust that has ownership interests in 18 properties totaling 8,271 rooms in the United States, Mexico and Europe. It is also a part owner of Hotel Del Coronado.
— SDBJ Staff Report