The historic Hotel del Coronado, one of the country's most legendary inns, has a new majority owner —Blackstone Real Estate Advisors, a division of Wall Street powerhouse Blackstone Group.
Blackstone stepped in as the previous majority owner, Strategic Hotels & Resorts, faced a $630-million loan balance due this month. The recapitalization with Blackstone values the hotel at about $590 million and gives Blackstone a 60% ownership interest, Strategic Hotels said Monday.
Strategic Hotels retains 34.3% of the ownership, and La Quinta-based KSL Resorts, the hotel's operator, retains 5.7%. Deutsche Bank provided a $425-million loan for the deal.
"We are very pleased by this outcome, as it provides the opportunity for us to achieve attractive returns on our new investment, significantly reduces the hotel's indebtedness and maintains our ownership in this iconic asset," said Laurence Geller, chief executive of Strategic Hotels.