The hotel duo Fairmont by Accor and Element by Westin, born from the conversion of a former downtown New Orleans office tower, has just undergone a $120 million recapitalisation, equivalent to roughly €103 million at current exchange rates.
A financing package combining bridge debt and preferred equity
Access Point Financial, a private real estate credit firm specialising in hospitality, and TMGOC Ventures, a private equity firm focused on real estate development, co-originated the facility in the form of a bridge loan and a preferred equity investment. The deal was brokered by Russ Schildkraut of Ackman-Ziff.
This is not Access Point Financial’s first involvement in a large-scale hotel conversion: the company had previously structured a $375 million capitalisation for the conversion of 38 Studio 6-branded hotels, underlining its position as an active lender on asset repositioning projects in the United States.
A 1970s office tower converted into a dual-brand property
The building, constructed in 1970 and designed by Skidmore, Owings & Merrill, was acquired in 2014 by Kailas Companies, a New Orleans-based developer whose portfolio exceeds 185,000 sqm of built space. The conversion project into a hospitality asset was launched in January 2024.
The 31-storey complex now houses both brands, along with the Emeril’s Delmonico restaurant and roughly 13,935 sqm of Class A office space. According to CoStar data, the Element opened its doors in February 2026, while the Fairmont’s opening is scheduled for autumn 2026, following an initial project announcement that had pointed to a 2025 timeline.
A strategic location between the business district and key demand drivers
The complex is located in New Orleans’ central business district, one block from Canal Street and to the south-west of the French Quarter. It benefits from proximity to several demand generators, including Tulane University, the LSU Health Sciences Center, the Caesars Superdome and the Biomedical District.
Kailas Companies concentrates all of its projects in Louisiana. Last year, the developer completed the heritage renovation of New Orleans’ former Sara Mayo Hospital, transforming it into a mixed-use residential and commercial scheme complemented by a new tower.
Parties hail a landmark deal
“Naveen Kailas and Kailas Companies are an ideal hospitality partner, with a strong and well-respected local presence and an intimate knowledge of the New Orleans market,” said Dana Tsakanikas, chief investment officer of Access Point Financial.
“As we continue to grow our presence and revitalise historic properties in the New Orleans market, it is becoming increasingly important for us to work with well-regarded credit firms that have an intimate understanding of the hospitality sector,” said Naveen Kailas, chief development officer of Kailas Companies.
Glenn Alba, managing partner of TMGOC Ventures, noted that the partnership with Access Point Financial validated the thesis behind his firm’s preferred equity and mezzanine credit platform, adding that he was pleased to team up with Kailas Companies on this landmark asset and to provide flexible capital to leading sponsors.
The deal forms part of a broader trend of converting office assets into dual-branded hotel products, a strategy also seen in other dual-branded hotel campus financing deals in the United States, such as the Sunnyvale Marriott campus financed earlier this year.
At a glance by The Hospitality Tribune
Access Point Financial and TMGOC Ventures co-originated a $120 million (approx. €103 million) bridge loan and preferred equity investment
Recapitalizes the dual-branded Fairmont by Accor and Element by Westin hotels in downtown New Orleans
Project also includes Emeril’s Delmonico Restaurant and roughly 13,935 sqm (150,000 sq ft) of Class A office space
Converted from a 31-story, 1970-built former office tower acquired by Kailas Companies in 2014; conversion launched January 2024
Element opened February 2026; Fairmont slated to open fall 2026
Transaction brokered by Russ Schildkraut, Ackman-Ziff
