Cerberus Capital Management has reorganized over $1.3 billion of debt in a six-hotel portfolio, The Wall Street Journal reports. The private equity firm will sustain the Kyo-ya resort portfolio, consisting of the Sheraton Waikiki Hotel in Honolulu, the Palace Hotel in San Francisco and the Royal Hawaiian in Honolulu.
Cerberus has won a two-year reprieve on the resorts’ first mortgage and has paid $77 million of the loan's principal. The firm also refinanced the outstanding $239 million of junior mezzanine debt on the resorts with a new five-year loan.
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