NEW YORK–(BUSINESS WIRE)–#creditratingagency–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.
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Methodologies
- CMBS: North American CMBS Property Evaluation Methodology
- CMBS: North American CMBS Single Borrower & Large Loan Rating Methodology
- Structured Finance: Global Structured Finance Counterparty Methodology
- ESG Global Rating Methodology
Disclosures
Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.
A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.
Information on the meaning of each rating category can be located here.
Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.
About KBRA
Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.
Doc ID: 1009834
Contacts
Analytical Contacts
Laura Wolinsky, Senior Director (Lead Analyst)
+1 646-731-2379
laura.wolinsky@kbra.com
Michael Brown, Managing Director
+1 646-731-2307
michael.b.brown@kbra.com
Nitin Bhasin, Senior Managing Director, Global Head of CMBS (Rating Committee Chair)
+1 646-731-2334
nitin.bhasin@kbra.com
Business Development Contact
Daniel Stallone, Managing Director
+1 646-731-1308
daniel.stallone@kbra.com
