National CORE, one of the nation’s largest nonprofit developers and property managers of affordable housing, has closed approximately $103 million in bond financing to support the transformation of the Ontario Airport Hotel & Conference Center into Hyatt Regency Ontario, an upper-upscale, full-service hospitality destination near Ontario International Airport.
The successful consummation of the bond offerings paves the way to a rapid renovation project that will reimagine the hotel, redefine hospitality in the Inland Empire and drive economic growth in neighboring communities.
“This project represents the rebirth of an iconic property that has long stood at the gateway to our community,” said Jeff Burum, chairman of the board of directors for National CORE. “This is an investment in Ontario and in economic growth that elevates the region for residents, businesses, travelers and the organizations serving this community.”
The project brings together the experienced team of Hyatt as franchisor, Manhattan Hospitality Advisors as hotel operator, M. Arthur Gensler Jr. & Associates, Inc. as architect and National CORE as owner and developer.
“Hyatt Regency Ontario near a major airport will bring a unique value proposition centered on connectivity, convenience, and elevated full-service hospitality. The brand is designed to serve as a dynamic hub for business and leisure travelers by offering expansive meeting and event space, premium food and beverage experiences, flexible gathering areas, and seamless access for travelers in transit,” said Patrick Schumm, senior vice president of franchise operations and owner relations, Hyatt. “Beyond stays, Hyatt Regency hotels are built to attract conferences, corporate meetings, and regional events that generate sustained economic activity and community engagement. We are excited by National CORE’s vision and the opportunity to create a destination that delivers long-term value for travelers, local businesses, and the broader community.”
The bond offerings also mark a major investment in the region and reflect confidence in the project team, the long-term vision for the property and National CORE’s financial strength.
Investor demand for the offering was strong and well in excess of the par amount offered allowing JP Morgan, who served as the sole underwriter, to reduce interest rates to a blended rate for the entire financing (CPACE + Revenue Bonds) of slightly more than 6%.
Robert Diaz, Executive Vice President and project lead with National CORE, noted that “Investors responded to the strength of National CORE’s balance sheet, our longstanding presence in the Inland Empire and our ability to execute complex development projects. This financing structure allowed us to align long-term community investment with a transformational hospitality project that will benefit the region for decades.”
“The highly innovative financing structure we were able to arrange for National CORE was the result of strong collaboration between a team dedicated to making a success out of this effort and was driven by strong partnership from Jones Lang LaSalle (JLL), GreenRock Capital, FrostBrownTodd Gibbons, Chapman and Cutler, Orrick and JP Morgan,” said Fred Schuster of FGS Realty Advisors.
“The complexity of structuring the first hospitality tax-exempt bond financing for JLL required creativity and a dedicated team of the best professionals in the business. National CORE’s A-plus credit rating, continued track record of improving the community through development, and National CORE’s vision and dedication to transform this asset were key factors in getting this transaction closed together,” said Marc Schillinger of JLL Capital Markets.
The financing package included approximately $27.3 million in Property Assessed Clean Energy (PACE) bonds supporting eligible energy-efficiency improvements and approximately $74.5 million in hotel revenue bonds supporting renovation, construction and project-related costs.
“It is great to work with the team at National CORE, which is a leader in building cost-contained, high-performance developments that minimize impact on natural resources and aligns perfectly with the purposes of PACE financing,” said Joe Euphrat, Co-Founder & Managing Principal of GreenRock.
National CORE views the hotel investment as part of a broader long-term strategy to diversify revenue sources and strengthen organizational stability to further fuel its efforts in furtherance of its mission of providing affordable housing and resident services.
National CORE also views the investment as part of a broader workforce development strategy through its “CORE Academy,” including future hospitality career pathways and training opportunities connected to the hotel industry.
“Our mission has always been about investing in communities in ways that create lasting impact,” Burum added. “This project reflects that same philosophy. We are building something that serves the region today while creating opportunities for the future.”
Renovation work is ongoing, with the property expected to officially open as Hyatt Regency Ontario in early 2027.
The term “Hyatt” is used in these release for convenience to refer to Hyatt Hotels Corporation and/or one or more of its affiliates.
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