Civitas Capital Group, a real estate investment firm specialising in niche US opportunities, has announced a $150m senior loan for the construction of a 210-room Curio Collection by Hilton Hotel on the island of Kauai, Hawaii.
The deal highlights Civitas' ability to provide financing solutions in a tough market for real estate developers.
The company stated that traditional lenders such as banks and insurance companies are often hesitant to fund certain projects. Civitas' bridge lending platform steps in to fill this gap, offering capital for acquisitions, refinances and construction projects.
The new resort sits on 8.5 acres within a 450-acre oceanfront development.
The property will include a restaurant, a pro shop for a nearby golf course, an outdoor pool, meeting spaces and a fitness centre.
This will be the second Hilton-branded hotel on Kauai.
"With the project's institutional capital backing, experienced sponsorship and high barrier to entry location, this financing opportunity matches the strategic vision of our bridge lending programme," said Austin Khan, managing director of investments for Civitas, in a statement.
"We continue to focus on the growth of our platform with over half a billion of closed or currently in-process transactions over the past 12 months."
The new resort is situated in Kauai, known for its stunning scenery and secluded atmosphere.
The island's lodging industry has seen a rebound and exceeded its pre-pandemic performance in 2023.
Kauai was voted the best Hawaiian island by Travel + Leisure magazine readers that same year.
"We strive to be great lending partners to the hospitality industry," said Marisa Lizak, managing director of investments for Civitas, in a statement.
"As both an equity investor in hotels as well as a debt capital provider to the market, we are able to understand the unique challenges of the asset class and structure financing solutions that fit the needs of institutional hotel owners."
Civitas Capital Group's loan positions the new Kauai resort for success, contributing to the island's growing tourism industry.
