KBRA Assigns Preliminary Ratings to WBHT 2025-WBM
9 Jun 2025 | New York
KBRA announces the assignment of preliminary ratings to six classes of WBHT 2025-WBM, a CMBS single-borrower securitization.
The collateral for the transaction is a $340.0 million non-recourse, first lien mortgage loan that is expected to be co-originated by Wells Fargo Bank, National Association and Goldman Sachs Bank USA. The floating rate loan is expected to have a two-year initial term with three 12-month extension options and require monthly interest-only payments. The mortgage loan will be secured by the borrower’s leasehold interests in the Waikiki Beach Marriott located in Honolulu, Hawaii. The subject property features 1,307 keys, 10 food & beverage outlets, 24,572 sf of indoor meeting and ballroom space, 54,287 sf of retail space, two outdoor pools, a full-service spa, a fitness facility, game room, and a business center. The hotel was constructed between 1971 and 1979. Since 2017, the sponsor has invested approximately $118.4 million ($90,572 per key) on capital improvements at the property. The most recent comprehensive renovation was largely completed in 2022 when the sponsor spent $95.2 million ($72,863 per key) to renovate all guestrooms, the third floor terrace and pool deck as well as construct the Luana Lounge to cater to Japanese tour groups. For the TTM 3/2025 period, the subject property achieved an occupancy of 83.6% with an ADR of $262.96, resulting in a RevPAR of $219.87. As of the TTM 3/2025 period, the property achieved occupancy, ADR and RevPAR penetration rates of 98.0%, 102.6% and 100.5%, respectively.
KBRA’s analysis of the transaction included a detailed evaluation of the property’s cash flows using our North American CMBS Property Evaluation Methodology, and the application of our North American CMBS Single Borrower & Large Loan Rating Methodology. In addition, KBRA also relied on its Global Structured Finance Counterparty Methodology for assessing counterparty risk in this transaction, and its ESG Global Rating Methodology, to the extent deemed applicable.
The results of our analysis yielded a KBRA net cash flow (KNCF) for the subject of approximately $28.8 million, which is 22.3% below the issuer’s NCF, and a KBRA value of approximately $288.4 million, which is 59.3% below the appraiser’s as-is value. The resulting in-trust KBRA Loan to Value (KLTV) is 117.9%. In our analysis of the transaction, we also reviewed and considered third party engineering, environmental, and appraisal reports, the results of our site inspection of the property, and legal documentation review.
To access ratings and relevant documents, click here.
Click here to view the report.