Mesa West Capital has provided a $55m loan to refinance the Hilton Crystal City hotel in Arlington, Virginia, marking the second hotel loan the Los Angeles-based lender has made to The JBG Companies this year.
JBG acquired the 393-room full-service hotel, adjacent to the Ronald Reagan National Airport, in 2012, completing a comprehensive renovation of the property the following year, including guest room lobby and meeting space upgrades, a new executive lounge and six new studio suites.
“Our loan will give them the runway to continue to capitalize on the work they’ve started and continue to do there,” said Mesa West Capital Assistant vice president Daniel Tanner, who originated the financing.
This is Mesa West’s second financing on a JBG-owned hotel (and its fourth in the DC metro this year), having provided JBG in March with $27m in first mortgage debt to refinance the 191-room Westin Reston Heights in Reston, Virginia.
Hotel occupancy in Washington, DC, Maryland and Virginia metropolitan areas — where JBG owns 12 full-service hotels — increased 7.3 percent over the fourth quarter of 2014, the largest increase among the top 25 hospitality markets in the US, according to data from STR.
“JBG and manager Crescent Hotels and Resorts have taken the necessary steps to capture an increasing share of an improving hospitality market in the greater DC metro,” Tanner said.
Eastdil Secured arranged the financing.