Hudson Bay Capital Provides $55M Refi for Denver Hotel


A joint venture between Taconic Capital Advisors, Pyramid Global Hospitality and Triangle Capital Group has secured a $55 million loan to refinance the Doubletree Denver Hotel, Commercial Observer has learned.

Hudson Bay Capital provided the loan on the 561-key hotel in Denver’s Central Park neighborhood, according to Walker & Dunlop, which arranged the transaction with a capital markets team of Adam Schwartz, Aaron Appel, Jonathan Schwartz, Keith Kurland, Michael Diaz, Triston Stegall and Christopher de Raet. The floating rate, non-recourse loan, which closed early this week, carries an initial two-year term with a 12-month extension option. 

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Diaz, managing director at  W&D, said the deal would pay off the sponsorship’s remaining loan balance on the asset and achieve additional financing to stabilize the property from a cash flow perspective. He said the JV will likely look to sell the property in the next two to three years, when there are more favorable cap rates and net operating income is up.

Taconic, Pyramid and Triangle Capital purchased the DoubleTree Denver Hotel, along with the nearby DoubleTree Denver Central Park, in 2022 for $24.39 million, according to the Denver Business Journal. Prime Finance provided a $59.9 million two-year, floating rate acquisition loan for the deal that same year, which was also brokered by W&D. 

The 300-room DoubleTree Denver Central Park was sold in November for $39 million to the City of Denver to be used as a homeless shelter, the Denver Business Journal reported. Diaz said proceeds from the sale were used to reduce leverage of the DoubleTree Denver. 

“They were able to sell one at a very attractive price and one that they like better and they’re finishing up the [property improvement plan] to improve the asset and to stabilize it and then they’ll divest when it makes sense,” Diaz said. “We had a great lender who understood the business plan and understood on a basis for key and what the debt yield will be in the future and felt that the sponsor was going to be able to perform.” 

Located at 3203 Quebec Street, DoubleTree Denver is situated steps from United Airlines‘ recently upgraded pilot training facility. The hotel’s amenities include an indoor pool, fitness center and business center.

Spokespeople at Hudson Bay Capital, Taconic Capital Advisors, Pyramid Global Hospitality and Triangle Capital Group did not immediately return requests for comment.

Andrew Coen can be reached at