Kailas lands $120M to recapitalize New Orleans dual-brand hotel
What's the deal? Kailas CompaniesDealroom has a profile for this one. Try Dealroom → has secured a $120 million bridge loan and preferred equity investment to recapitalize a completed adaptive reuse project in downtown New Orleans. Access Point FinancialDealroom has a profile for this one. Try Dealroom → and TMGOC VenturesDealroom has a profile for this one. Try Dealroom → originated the financing, brokered by Russ Schildcrout of Ackman-ZiffDealroom has a profile for this one. Try Dealroom →.
What's the endgame? The project converts a 31-story office tower — built in 1970 and designed by Skidmore, Owings & MerrillDealroom has a profile for this one. Try Dealroom → — into a dual-branded hotel. It houses a 250-key Fairmont by AccorDealroom has a profile for this one. Try Dealroom →, a 216-key Element by WestinDealroom has a profile for this one. Try Dealroom →, Emeril's Delmonico restaurant, and 150,000 square feet of Class A office space.
Why now? Kailas acquired the tower in 2014 with conversion in mind and began construction in January 2024. The completed project now needs longer-term capital, which the bridge loan provides.
Why here? The property sits in the central business district, one block from Canal Street and near the French Quarter. Demand drivers include Tulane University, LSU Health Sciences CenterDealroom has a profile for this one. Try Dealroom →, Caesars SuperdomeDealroom has a profile for this one. Try Dealroom →, and the Biomedical District.
Kailas, active for 36 years, owns and operates over two million square feet of office, multifamily, and retail space around New Orleans. "APF and TMGOC have lived up to their reputation, delivering the right solution to meet our needs," said Naveen Kailas of Kailas Companies.
The signal: At $120 million, the deal ranks among the larger debt rounds in its cohort — in roughly the 29th percentile by amount. The recapitalization shows lenders still backing office-to-hotel conversions in established leisure markets. "We're pleased to align with Kailas Companies on this landmark New Orleans asset and to deliver flexible capital to best-in-class sponsors," said Glenn Alba, managing partner at TMGOC Ventures.
Image credit: Dennis Wong
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