Real estate investment management company Barings has jointly originated a $113 million debt package alongside affiliates of Apollo to refinance the Westin Indianapolis in downtown Indianapolis. An affiliate of KSL Capital Partners has owned the hotel since 2019.
The loan was structured with mezzanine and senior mortgage components. Barings funded the mezzanine component of the loan, with Apollo affiliates originating the senior portion.
“We are excited to partner with Apollo to provide this financing for KSL, a best-in-class hospitality investor,” Daniel Hedgepeth, director with Barings, said in a statement. “We view the hotel as a high-quality asset in a prime downtown location, offering direct connectivity to the Indianapolis Convention Center. We consider fundamentals in the Indianapolis hotel market to be healthy with a favorable supply environment and strong growth in demand with the continued recovery of business and group travel. With extensive property renovations completed in recent years, we believe the Westin Indianapolis is well-positioned for strong future performance.”
The Westin Indianapolis is close to the Indiana Convention Center, Circle Centre Mall, Lucas Oil Stadium and the Indiana Statehouse. Originally built in 1989, the hotel was renovated from 2020-2022. The hotel has 575 guestrooms, 48,300 square feet of total event space, a new food and beverage outlet and a recently renovated fitness center.
Eastdil Secured advised the sponsorship on the financing.