The Loren Group secured fresh financing for its luxury boutique hotel at Lady Bird Lake in Austin.
Southern Realty Trust provided the $57 million loan to The Loren at Lady Bird Lake, a 108-key hotel that sits on 1.5 acres at 1211 West Riverside Drive. The loan amounts to $528,000 per key.
The loan consists of $25 million funded by Southern Realty Trust and $32 million from Sunrise Realty Trust. Both entities are based in West Palm Beach; they’re affiliates of TCG Real Estate that focus on providing financing to assets located in the Sun Belt.
The Loren opened in 2022, just across the river from downtown Austin. It’s part of a mixed-use development that includes 24 condo units, a coffee shop and a rooftop restaurant, Nido. Prices start at $1.8 million for the two-, three- and four-bedroom residential units.
The hotel property also includes the historic Paggi House, which reopened this year. The pre-Civil War landmark is now open to the public as an art gallery and event space.
The property has received accolades from Condé Nast Traveler, Travel and Leisure and Esquire, which included The Loren on its list of best stays for 2024.
Despite adding nearly 16,000 rooms between 2016 and 2022, Austin’s hospitality market is thriving, with an occupancy rate of 67.4 percent, ConnectCRE reported, citing data from Marcus & Millichap. The market also saw a 4 percent increase in average daily rate for luxury hotels.
The Loren Group’s flagship hotel is in Bermuda. The New York-based firm is opening a third property in Turks & Caicos next year.
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