(Bloomberg) -- The Beverly Hilton and adjacent Waldorf Astoria secured $500 million in refinancing from Goldman Sachs Group Inc. and Aareal Capital Corp. as the project's owners prepare to build a neighboring condo and hotel complex in Beverly Hills, California.
Aareal, a unit of Aareal Bank AG, based in Wiesbaden, Germany, is providing the senior portion of the $500 million debt while Goldman Sachs Asset Management is financing the mezzanine portion, according to a statement. Terms of the loan weren't disclosed.
Hotels were hit hard by the Covid-19 pandemic, especially properties that depend on conferences and events. The new financing signals support for the future of the Beverly Hills properties, according to Jonathan Goldstein, chief executive officer of Cain International, which partnered with Alagem Capital Group to acquire the Waldorf and Beverly Hilton in 2018.
“This strong commitment from highly regarded institutions is a major milestone for our project and further underpins our belief in the bright future for the hospitality industry and global gateway cities,” Goldstein said in the statement.
The Beverly Hills City Council in June approved plans for Alagem and Cain to build a $2 billion mixed-use project called One Beverly Hills with two condo towers and a hotel, designed by architect Norman Foster. Almost half the site is reserved for botanical gardens. The project is expected to open in 2026.
The Beverly Hilton, opened in 1955 by Conrad Hilton, is known for hosting the Milken Institute Global Conference and the Golden Globe Awards.
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