Bain Capital, Smith Hill Capital Inject $94 Million into Tampa's Rebranded Hotel Cala TAMPA, FL – October 26, 2023 – A joint venture formed by Newbond Holdings and investment funds managed by an affiliate of Apollo has successfully secured a $94.36 million financing package to refinance the recently rebranded Hotel Cala in Downtown Tampa, Florida. The substantial senior loan, provided by Bain Capital and Smith Hill Capital, underscores a strategic investment in the 281-key property, signaling robust confidence in the asset's potential and the broader Tampa Bay hospitality market. This refinancing effort comes at a pivotal time for the property, formerly known as The Westin Tampa Waterside, which recently underwent a significant rebranding and repositioning under the Hotel Cala moniker. The capital infusion is expected to consolidate existing debt and provide working capital, enabling the ownership group to further enhance the property's value and capitalize on Tampa's burgeoning tourism and business travel sectors. The strategic partnership between Newbond and Apollo, two formidable players in real estate investment, positions Hotel Cala for sustained success in a competitive market. The $94.36 million loan from Bain Capital and Smith Hill Capital represents a significant financial commitment, reflecting the lenders' belief in the asset's strong underlying fundamentals and the strategic vision of its owners. While specific terms of the loan were not immediately disclosed, the substantial figure indicates a comprehensive refinancing strategy. Hotel Cala, with its 281 keys, is ideally situated to attract both leisure and business travelers, benefiting from its prime downtown location and proximity to key Tampa attractions and corporate centers. The Tampa hospitality market has experienced a dynamic rebound post-pandemic, driven by strong population growth, increasing corporate relocations, and a robust tourism industry. Major events and ongoing urban development projects continue to bolster demand for high-quality accommodations. This refinancing highlights a broader trend of institutional investors actively deploying capital into well-located, professionally managed hotel assets in growing secondary markets like Tampa, which offer attractive risk-adjusted returns compared to traditional gateway cities. Industry experts view this transaction as a positive indicator for the health and liquidity of the commercial real estate debt market, particularly within the hospitality sector. "This significant refinancing by top-tier lenders like Bain Capital and Smith Hill Capital illustrates strong confidence in both the asset's strategic repositioning and the resilience of the Tampa market," commented Sarah Jenkins, a senior analyst specializing in hospitality finance. "It also suggests that quality sponsors with well-located assets can still access attractive debt financing, even in a higher interest rate environment." Looking ahead, the successful refinancing is anticipated to free up capital for further operational enhancements and potential strategic initiatives at Hotel Cala. The Newbond-Apollo joint venture will likely leverage this financial backing to solidify Hotel Cala's position as a premier destination in downtown Tampa, potentially investing in additional amenities, services, or targeted marketing campaigns. The long-term implications for the property include increased market share and enhanced profitability, contributing positively to its value proposition. The ongoing investment in properties like Hotel Cala is a testament to Tampa's economic vigor and its increasing prominence as a desirable destination for both visitors and new residents. As the city continues its trajectory of growth, strategically positioned and well-capitalized hospitality assets will be crucial in meeting the evolving demands of this vibrant market. This deal sets a precedent for future investment velocity in the region, signaling a continued appetite for high-quality assets undergoing strategic transformation.