Starwood Property Trust Lends $98M on Margaritaville Resort Orlando
By Andrew Coen August 31, 2021 11:20 am
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Encore Capital Management has secured a $98.39 million financing package to refinance its Margaritaville Resort Orlando property, Commercial Observer can first report.
Starwood Property Trust provided the loan, which refinances existing senior and mezzanine construction debt, and also provides additional capital for Encore to expand the hotel development in Kissimmee, Fla. by 75 rooms. The 186-key hotel sits in a prime spot near Disney World.
Concord Summit Capital arranged the transaction with a deal team that included Managing Director Kevin O’Grady, Director Justin Neelis and Senior Analyst Daniel Rojo.
“Margaritaville was a success story from its opening and became even stronger after the reopening of Orlando in 2020,” O’Grady said in a statement. “The owners have planned the resort’s expansion carefully and enhanced the brand significantly.”
Located at 8000 Fins Up Circle, Margaritaville Resort Orlando opened in January 2019 after Concord Summit arranged its construction financing in 2017. Concord began marketing the current lending opportunity this past spring as the hospitality industry started rebounding from the headwinds of the COVID-19 pandemic.
“We are excited to have Starwood (STWD) Capital as our lending partner for Margaritiville,” Encore CEO Art Falcone said in a statement. “Starwood has recognized that the property has performed well to date and we are happy to have them on board as we grow the hotel, adding 75 rooms to accommodate our loyal and growing Margaritaville guests.”
Officials for Starwood Property Trust did not immediately respond to a request for comment on the deal.
Andrew Coen can be reached at acoen@commercialobserver.com.
