KSL Capital Partners just closed a $480 million refinancing deal on two of its Hawaiʻi properties: Outrigger Reef Waikiki Beach Resort and Sheraton Kauaʻi Coconut Beach Resort. Both are owned by KSL, but only the Reef is part of the Outrigger portfolio.
KSL used most of the proceeds to pay off existing loans and pulled out nearly $148 million in equity, while maintaining full ownership. Private equity rarely wants to tie up its own capital longer than necessary. If they can refinance, pay off old loans, and pull out equity while keeping control, they’ll do it. Debt becomes a tool for liquidity, in other words, more cash to buy more stuff.
Most private equity holds last 5 to 7 years; KSL is already at year 8+ into it’s acquistion of Outigger. For now, they’re holding (re-financing) and still investing in upgrading the properties.
