Blackstone Group, New York City, is looking to borrow approximately US$450 million to refinance debt on the Hotel del Coronado in San Diego, a source told Bloomberg.
Blackstone’s real estate unit holds 60% of a joint venture that took ownership of the hotel in a February 2011 recapitalization. The other partners in the deal are Strategic Hotels & Resorts, which held 34.3% after the recapitalization, and KSL Resorts, which held 5.7%. Deutsche Bank AG provided US$425 million of debt financing for the recapitalization, and the owners can repay the debt after two years, Bloomberg reported.
All three companies declined to comment to Bloomberg about this story.