DBRS Morningstar Confirms Ratings on All Classes of Hilton USA Trust 2016-HHV, Removes Four Classes From Under Review With Negative Implications.

ENPNewswire-September 16, 2021--DBRS Morningstar Confirms Ratings on All Classes of Hilton USA Trust 2016-HHV, Removes Four Classes From Under Review With Negative Implications

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Release date- 15092021 - DBRS, Inc. (DBRS Morningstar) confirmed its ratings on all classes of Commercial Mortgage Pass-Through Certificates, Series 2016-HHV (the Certificates) issued by Hilton USA Trust 2016-HHV as follows.

Class A at AAA (sf)

Class B at A (sf)

Class C at A (low) (sf)

Class D at BBB (sf)

Class E at BB (sf)

Class F at B (low) (sf)

Class X-A at AAA (sf)

Class X-B at A (high) (sf)

With this review, DBRS Morningstar removed all classes from Under Review with Negative Implications, where they were placed on September 24, 2020, as a reflection of the increased risks surrounding the Coronavirus Disease (COVID-19) pandemic. With this review, all classes now carry Stable trends, including Classes A, B, X-A, and A-B, which previously carried Negative trends. These rating actions reflect DBRS Morningstar's view that, despite a significant interruption of operations and cash flow in 2020 related to the pandemic, the underlying hotel property is generally well positioned to rebound from the effects of declines in travel and the assigned ratings adequately reflect the risk of residual effects stemming from the coronavirus pandemic. The loan has performed as agreed since the 2016 close, and, to date, there have been no relief or loan modification requests submitted by the borrower during the pandemic.

The collateral for the Certificates is a $750 million pari passu participation interest in a $1.3 billion whole loan on the Hilton Hawaiian Village, a full-service, luxury, beachfront resort in Waikiki, Hawaii. The hotel consists of five guest towers comprising 2,860 rooms, plus conference space for up to 2,600 attendees. The resort has the longest stretch of beach along Waikiki and the largest amount of meeting space among its competitors. The collateral also includes 138,000 square feet (sf) of leased commercial space on the property.

The collateral is predominantly structured as fee-simple ownership with the only leased parcel used for staff housing. The amenities include three restaurants, four lounges, and several other food and beverage (F&B) outlets, five outdoor pools, fitness centers, a full-service spa, a boat dock, a lagoon, and a 1,978-space parking garage. According to management, the hotel attracts...

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