CHICAGO--(BUSINESS WIRE)--Fitch Ratings has affirmed all classes of GSCCRE Commercial Mortgage Trust 2015-HULA Commercial Mortgage Pass Through Certificates Series 2015-HULA. A detailed list of rating actions follows at the end of this release.
KEY RATING DRIVERS
The trust certificates represent the beneficial interests in a mortgage loan secured primarily by the Four Seasons Resort Hulalalai located in Kailua-Kona, Hawaii. The subject is situated on 725 acres along the Kohala Coast. Amenities of the 243-room hotel include five swimming pools, multiple indoor and outdoor function spaces and several F&B outlets. It is the only AAA Five Diamond property on Hawaii's Big Island. The initial loan term is two years, and can be extended up to an additional five years. The debt is interest-only for the fully extended loan term. A $33.9 million B-note and a $40 million C-note are included in the total debt structure but held outside of the trust.
The affirmations are the result of sufficient credit enhancement and stable performance of the underlying asset since issuance. The subject exhibits superior performance in comparison with its local competitive set. For the trailing 12 months ending in March 2016, the property's occupancy, ADR and RevPAR were 84.4%, $1,138.22 and $960.10, respectively. At issuance, the property was also a top performer within its state-wide competitive set and among high-end luxury resorts across North America. The hotel is one of the most successful within the Four Seasons brand.
In addition to the hotel, the collateral also includes a private membership club with two 18-hole golf courses, two clubhouses, a water-sports venue, various retail outlets and the Hualalai Sports Club and Spa. The third collateral component consists of 55 acres of fee simple residential land and five acres of unimproved commercial land parcels. The resort is situated in a premier, oceanfront location and offers a true high-end luxury option not found elsewhere on the island.
Fitch's stressed DSCR and LTV for the trust component are 1.05x and 100.4%, respectively. Leverage on a per-key basis is $1.2 million. The transaction closed in October 2015.
All classes maintain Stable Outlooks. Due to the recent issuance of the transaction and stable performance, Fitch does not foresee positive or negative ratings migration until a material economic or asset level event changes the transaction's portfolio level metrics.
USE OF THIRD-PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G-10
No third-party due diligence was provided or reviewed in relation to this rating action.
Fitch has affirmed the following classes:
--$130 million class A at 'AAAsf', Outlook Stable;
--$26 million class B at 'AA-sf', Outlook Stable;
--$19 million class C at 'A-sf', Outlook Stable;
--$29 million class D at 'BBB-sf', Outlook Stable;
--$44 million class E at 'BB-sf', Outlook Stable;
--$51 million class F at 'B-sf', Outlook Stable;
--$243.9 million* class X-CP at 'B-sf', Outlook Stable;
--$243.9 million* class X-NCP at 'B-sf', Outlook Stable.
*Notional amount and interest-only.
Additional information is available at www.fitchratings.com.
Counterparty Criteria for Structured Finance and Covered Bonds (pub. 01 Sep 2016)
Criteria for Analyzing Large Loans in U.S. Commercial Mortgage Transactions (pub. 18 Aug 2016)
Criteria for Rating Caps and Limitations in Global Structured Finance Transactions (pub. 16 Jun 2016)
Global Structured Finance Rating Criteria (pub. 27 Jun 2016)
GSCCRE 2015-HULA -- Appendix
Dodd-Frank Rating Information Disclosure Form