The Fairmont Austin Hotel Obtains a $430 Million Refinancing

By Elias DaSilva | September 12, 2024.

Manchester Financial Group Signs a New Financing Agreement for the Fifth Tallest Building in the City

A California-based company has successfully refinanced one of the largest hotels in downtown Texas with a $430 million deal. Manchester Financial Group, in collaboration with Goldman Sachs and JLL Capital Markets, has refinanced the Fairmont Austin Hotel, a 37-story building located at 101 Red River St. in downtown Austin as part of a five-year loan agreement.

This loan is just part of a large mortgage financing package, which replaces a previous $300 million loan and a $125 million debt, according to JLL Capital Markets. Papa Doug Manchester, founder of Manchester Financial Group, said: “The funds will help in the development and continued improvement of this prime property, ensuring it remains a leading destination for visitors to Austin.”

According to the report, Fairmont Austin is a prominent hotel in the city center, which entered the market last year when a loan on the property was about to mature. The property, which opened in 2018, was expected to attract bids of approximately $575,000 per room, totaling over $600 million, according to Real Estate Alert.

The ownership of Fairmont Austin, a joint venture between Manchester Financial Group and Colony Capital, had hired Eastdil Secured to market the 1,048-room hotel for sale, Real Estate Alert reported. Manchester Financial Group has not yet responded regarding the company’s future plans for the hotel after refinancing.

Fairmont Austin is the fifth tallest building in the city, with a surface area of approximately 1.4 million square feet.