Bain Capital and Smith Hill Close $94M Refinancing for Tampa's Hotel Cala

Bain Capital and Smith Hill Capital have finalized a $94 million refinancing agreement to renovate and rebrand a 281-key property in Downtown Tampa. According to Hotels Magazine, the seven-story building is converting from a Sheraton into Hotel Cala, which will join the Curio Collection by Hilton portfolio. [2]

What physical changes will the property undergo?

The renovation project targets multiple areas of the seven-story hotel to align with its new brand identity. Hotels Magazine reported that the upgrades will deliver redesigned guest rooms alongside reimagined meeting and event spaces. [2] The exterior of the building will receive facade updates, while the outdoor amenities will feature a destination pool deck and enhanced waterfront public areas. [2] Upon completion, the property will operate under the Curio Collection by Hilton brand, granting it access to Hilton’s loyalty platform, which boasts more than 200 million members. [2]

Where is the hotel located?

The property sits directly on the Hillsborough River in Florida. Lodging Magazine noted that the hotel is positioned within Downtown Tampa’s Riverwalk District. [1] This specific placement provides guests with direct access to the riverwalk itself. [2] Brendan McCormick, co-founder and managing principal of Smith Hill Capital, noted that this direct location makes the property a centralized asset for both business and leisure travel. [2]

Who is providing the financial backing?

The $94 million refinancing package was executed through a joint venture between Bain Capital and Smith Hill Capital. [1] Smith Hill Capital operates as the fully integrated commercial real estate debt investment management business of Procaccianti Companies, according to Hotels Magazine. [2] The two firms have partnered to back the property's ownership group as they execute their growth plans. [2]

Why did the investors target this asset?

The investors view the property as an asset that fills a specific market void by appealing to both leisure and business travelers. [2] Mark Gormley, a managing director of Bain Capital, stated that the transaction reflects their approach to partnering with institutional sponsors in premier markets to support the growth of high-quality assets. [2] Furthermore, McCormick highlighted the dynamic lodging market of Tampa and the property's premier sponsorship as factors driving the investment. [2]

How does this fit into broader investment goals?

The joint venture partners are actively seeking similar investments across specific market types. McCormick stated that Smith Hill Capital and Bain Capital continue to pursue opportunities in premier urban and destination markets. [2] They specifically target areas where they observe consistent demand and long-term value creation potential. [2]