Restructured a $120M hospitality portfolio without surrendering control
A family office with four luxury hospitality assets across the Gulf, $86M in over-levered debt, and a family principal who had been told by three banks to liquidate. We rebuilt the capital stack, kept the family in control, and re-rated the portfolio.
- $86M of debt across five lenders, two on special-situations watchlists.
- Balloon maturity in 14 months with no realistic refi path under current covenants.
- Operating cash flow strong on paper, weak after debt service and FF&E reserves.
- One development-stage asset bleeding $640K/month with no opening date confirmed.
- Family principal unwilling to dilute equity or surrender control to a sponsor.
Lender map & sequencing
Built a creditor-by-creditor map of motivations, security, and decision authority. Sequenced negotiations so the most flexible lender set the precedent for the rest.
Asset-level QoE
Reconstructed an asset-level cash flow view, separating operating performance from accounting noise. Used it to defend a 38% NOI uplift assumption credibly.
Stack rebuild
Replaced two facilities with a single $94M club loan from a regional sovereign-adjacent fund, plus a $12M family mezzanine tranche to redeem the most aggressive lender.
Development triage
Paused the development asset, scoped a partner-led completion structure with a regional operator taking construction risk in exchange for a management contract.
A Gulf-based family office with four luxury hospitality assets, three operating and one in development. Portfolio value $120M, debt outstanding $86M across five lenders, two of which had moved the credit to special situations desks. Post-pandemic ADR recovery had been strong, but covenant headroom was nearly nil and a balloon was due in 14 months. Three regional banks had suggested asset sales; the family principal was unwilling to break up assets that had taken his father two decades to assemble.
- Month 1
Diagnostic & lender map
Five lender relationships mapped. Special-situations desks engaged before they engaged us. Asset-level QoE built.
- Month 2
Term sheet thesis
Capital stack thesis tested with three potential lead lenders. Sovereign-adjacent fund confirmed appetite within 11 days.
- Month 3
Negotiation
Lead $94M club loan term sheet in place. Existing lender payoffs negotiated with two waivers and one discounted payoff.
- Month 4
Development triage
Development asset paused. Partner-led completion structure agreed in principle with a regional operator.
- Month 5
Close & redemption
Club loan funded. Five lenders paid off or transitioned. Family mezzanine subordinated cleanly.
- $86M of debt restructured into a single $94M facility at 420 bps lower blended cost.
- Family retained 100% of equity ownership; no sponsor dilution, no asset sales.
- Weighted average debt maturity extended from 14 months to 84 months.
- Development asset stabilized under a partner-led structure, NOI accretion deferred but losses stopped.
- Portfolio NOI grew 38% in the nine months post-close on operational discipline alone.
- 01
Family offices lose control when they wait until special situations desks set the timeline. Engage first.
- 02
Asset-level QoE is the only credible defense of an NOI projection to a club-loan lender.
- 03
Mezzanine from the family is cheaper than equity from a sponsor, and infinitely cheaper than losing the asset.
"Three banks told me to sell. CapMaven asked me what I actually wanted. The answer was simple, and the structure they built protected it."
Why didn't a regional bank lead this deal?+
Two regional banks were inside the legacy stack and conflicted out. The sovereign-adjacent fund had the duration profile and the appetite to take the lead position; regional banks joined in the club.
Was the family principal involved in lender conversations?+
Selectively, by design. The principal joined two anchor meetings; the rest were run by us with daily debriefs. Founders carry signal value, but they also carry escalation risk.
How replicable is this for a smaller portfolio?+
Below ~$30M of debt, the club-loan structure is rarely available. The substitute is a single sponsor-friendly mezzanine line, and the principles, lender mapping, QoE, sequencing, are identical.
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