Kailas Companies secures $120M for New Orleans hotel conversion

Access Point Financial (APF) and TMGOC Ventures have co-originated a $120 million bridge loan and preferred equity investment for Kailas Companies. The funding is intended to recapitalize the conversion of a 31-story office tower in downtown New Orleans into a dual-branded hotel complex.

The project, located in the central business district, will feature the 250-key Fairmont New Orleans and the 216-key Element by Marriott New Orleans Downtown. In addition to the hotel spaces, the mixed-use development includes 150,000 square feet of office space and the Emeril’s Delmonico restaurant.

Kailas Companies acquired the Skidmore, Owings & Merrill-designed tower in 2014 with the intent to repurpose it for hospitality. Construction on the conversion began in January 2024. The transaction was brokered by Russ Schildcrout of Ackman-Ziff.