Westin Hotel Cleveland

Following the $76,000,000 gut redevelopment of a legacy hotel into the 484-room, 284 subterranean parking-bay Westin Hotel in downtown Cleveland, Ohio, as a result of the Covid pandemic disruptions, the hotel’s operators defaulted on the $35,000,000 of public bond financing. Upon the default, the bondholders’ trustee petitioned for, and secured, a court appointed receiver to thwart the operator’s attempt to immediately close the hotel. The receiver promptly engaged JDI to provide $6,000,000 of short-term bridge debt to maintain the hotel’s operations while the receiver finalized the negotiated sale of the property. JDI funded the bridge loan within five (5) business days of the receiver’s request, being granted a super-priority lien position by the court ahead of all lenders, including the bondholders. This executed bridge financing enabled the operating hotel to be sold in an orderly disposition, redeeming JDI’s fund and recovering virtually all of the bond holders’ funds.