Barclays Lends $225M on Iconic Washington Hilton Hotel


Clearview Hotel Capital and Oaktree Capital Management have secured a $225 million floating-rate loan from Barclays Capital to refinance the iconic Washington Hilton, Commercial Observer can first report.

Newmark Knight Frank’s Dustin Stolly, Jordan Roeschlaub, Chris Kramer and Nick Scribani arranged the financing for the Dupont Circle asset, along with Lawrence Wolfe and Miles Spencer from NKF’s lodging capital markets group.

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The 1,107-key, 12-story property features more than 110,000 square feet of meeting and conference space, as well as a variety of food and beverage choices.

The hotel, built in 1965, has hosted several prestigious events over the years; from Jimi Hendrix and The Doors concerts in the 1960s to the White House Correspondents’ Dinner and the National Prayer Breakfast today.

“After undergoing a transformative restoration, this market-leading, iconic hotel continues to capture demand from Washington D.C.’s constant flow of travelers and has been established as the premier group hotel in the market,” Stolly said.

The California-based borrowers acquired the asset, at 1919 Connecticut Avenue, in May 2016 from a joint venture between Lowe Enterprise Investors and the Canyon Johnson Urban Fund, paying around $315 million or $281,501 per key, Globe St. reported. The full-service property had previously traded hands in 2007 for $290 million.

Clearview and Oaktree added 37 guestrooms and 10,000 square feet of meeting space to the property in 2017.

“Clearview Hotel Capital and Oaktree Capital Management operate as a world-class partnership that together owns four hotels totaling over 3,700 rooms,” Roeschlaub added. “Their combined expertise and impressive track record make them ideal sponsors to drive sustainable growth in this historic asset.”

Clearview, located in Newport Beach, Calif., has acquired over $1.5 billion of hotels comprising 10,000 keys. L.A.-based Oaktree hit the news most recently after Brookfield Asset Management announced it was purchasing a majority stake in the investment management firm.  

It’s been an active week for NKF; the team also negotiated a $180 million loan from Barings for Chestlen Development’s dual-branded hotel in Philly, as first reported by CO.

Officials at Barclays, Oaktree and Clearview did not immediately respond to requests for comment.