The joint venture of Smith Hill Capital and Bain Capital has closed on its $216 million refinancing of the 774-key Westin New York Grand Central Hotel.
The hotel, built in 1981 in Midtown Manhattan, was bought by current owners Davidson Kempner Capital Management, a private equity firm, and HEI Hotels & Resorts for $302 million in January 2019, according to CoStar data. The hotel, which features 18,750 square feet of flexible meeting and event space, a full-service restaurant and a fitness center among other amenities, underwent an extensive renovation in 2021.
"The Westin Grand Central is a flagship property in one of the world's most dynamic lodging markets,” said Brendan McCormick, managing principal at Smith Hill Capital, in a news release. “Its proximity to Grand Central Terminal and Midtown's largest employers makes it a cornerstone asset for both business and leisure travel.”
Smith Hill Capital is the fully integrated commercial real estate debt investment management business of Procaccianti Companies, and Bain Capital is a private investment firm with about $185 billion in assets under management. The two formed a joint venture in October 2023 to originate debt and preferred equity for the hospitality sector with the goal of deploying $1 billion in gross capital in the following years. JLL's Hotels & Hospitality Group represented the sponsors in the transaction.
Among the joint venture’s recent deals are the origination of the $72 million first mortgage loan to KSL Capital Partners to refinance its Hotel Viking in July 2024 as well as its $235 million refinancing for Gurney’s Montauk Resort & Seawater Spa.
"This transaction further demonstrates our ability to provide flexible and creative capital solutions for high-quality assets and borrowers," said David DesPrez, a partner at Bain Capital, said about the Westin refinancing.