DEAL SUMMARY
Hunter Hotel Advisors has been exclusively retained to arrange $79 million in senior construction financing for the 123-key Hotel Oxbow in the heart of Downtown Napa, California. After more than nine years of planning, the project is fully entitled and shovel ready, a rare achievement in Napa’s highly restrictive development environment, where no other hotel sites currently hold active entitlements. Hotel Oxbow will mark Downtown Napa’s first newly constructed hotel in more than a decade and the first branded hotel in Downtown Napa in 20 years. Located at 711 First Street in Napa, Hotel Oxbow is situated directly across from the iconic Oxbow Public Market, the regions premier culinary and cultural anchor serving over 19,000 people daily. The Hotel is nestled along the Napa River and will benefit from the highest pedestrian traffic in Napa within walking distance from the Napa Valley Wine Train, The Culinary Institute of America at Copia, numerous tasting rooms, restaurants, and boutiques.
THE TEAM
Stratus Development Partners (Sponsor) has assembled an extraordinary team to deliver the Hotel Oxbow. With a total portfolio project value of roughly $1.6 billion, Stratus has successfully developed 344 hotel keys over the last 24 months and currently has an additional 105 keys under construction. Designed by Howard Backen of Backen and Backen, one of Napa Valley’s most iconic and influential architects whose work has helped shape the region’s built and cultural identity, the Hotel will embody the timeless charm and distinctive character of Wine Country. Remington Hospitality, a specialist in upper-upscale and luxury hotels under some of the world’s most respected brands, will operate the Hotel. Today, Remington Hospitality manages two of Napa Valley’s premier luxury properties: the Bardessono Hotel & Spa and Hotel Yountville Resort & Spa. Finally, as part of IHG Hotels, over 130 million rewards members and a $1.4B system fund (3rd largest in the world) will be supporting and supplementing the leisure and business demand to Hotel Oxbow.
THE OPPORTUNITY
In a market where hotel sales frequently exceed $1 million per key, Stratus Development Partners is developing a two-building, four-story hotel at a significantly lower cost. The Sponsor is pursuing a 73% LTC senior construction loan, approximately $640,000 per key, equating to roughly 55% LTV based on recent regional sale benchmarks. As a lifestyle property, the Hotel is strategically positioned to compete with its downtown counterparts as well as with flagged hotels farther up-valley. While the compset achieved a weighted average RevPAR exceeding $360 in 2024, Sponsor projects a $328 RevPAR in 2028, nearly 10% below current market performance, highlighting Sponsor's conservative underwriting approach. The market is thriving, with Downtown’s YTD June 2025 RevPAR up 5.1% YoY. Based on projections, the Hotel Oxbow is expected to generate a 14% debt yield in year two of operations.
DEBT CONTACT
PHOTO GALLERY
ABOUT HUNTER
Hunter Hotel Advisors is the leading investment advisory firm focused exclusively on the hotel industry. Their seasoned team of investment professionals and offices nationwide consistently provide clients with optimal results in hotel brokerage, financial advisory and capital markets services of any size or complexity. With over 45 years of experience in both full and select-service single assets as well as portfolio marketing, the firm’s capacity in valuation, economic analysis, and industry relationships has allowed HUNTER to consistently maximize value regardless of market conditions.
Hunter Hotel Advisors is the founder and producer of the well-known and respected Hunter Hotel Investment Conference. Since their first conference in 1989, they have had a consistent focus on producing an educational and networking format based on real estate and finance for hotel owners.
