A $302 million commercial mortgage-backed securities (CMBS) loan secured by the Hyatt Regency Waikiki Beach Resort & Spa, a 1,230-key luxury resort in Honolulu, has been sent to special servicing after sponsorship failed to deliver its final maturity payment earlier this month, according to an alert from Morningstar Credit. 

The $302 million loan — listed as HONO 2021-LULU, a single-asset, single-borrower CMBS loan — is the remaining debt on a $450 million loan owner Mirae Asset Global Investments Company, a South Korean-based asset management firm, used to refinance the property in 2021. 

The four-star hotel was in negotiations to be sold when the maturity default occurred, per special servicer commentary. 

Located at 2424 Kalākaua Avenue in Honolulu, Hawaii, the Hyatt Regency Waikiki Beach opened in 1976 and is structured as a two-tower luxury resort with approximately 94,961 square feet of retail space on site.

Cash flow has been a problem for the property. The 2021-vintage CMBS loan was underwritten for $36.7 million of annual revenue, but exceeded no more than $25.9 million in 2023. 

Mirae purchased the property from Blackstone in September 2016 for $780 million.

Bloomberg reported last year that Mirae expected to sell the hotel for as low as $650 million. 

Brian Pascus can be reached at bpascus@commercialobserver.com.