National CORE Lines Up $103M for Inland Empire Hotel Revamp

National CORE has obtained a $103 million financing package for the renovation and repositioning effort of the Ontario Airport Hotel and Conference Center, a hospitality property in Ontario, Calif., within the Inland Empire.

The debt includes tax-exempt funds in the form of $26 million in C-PACE bonds and $77 million in mortgage revenue bonds, all underwritten by JP Morgan and placed with municipal bond investors. GreenRock Capital and FGS Realty Advisors assisted the developer in securing the financing package.

National CORE, a nonprofit affordable housing developer based in Rancho Cucamonga, Calif., acquired the hotel in 2024 as part of a bankruptcy sale for just $20.7 million. Morgan Holding Group was the previous owner.

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Currently a 309-key hotel, the Ontario Airport Hotel and Conference Center will undergo an extensive redevelopment process, transforming it into a 295-key Hyatt Regency property. New features are set to include expanded suites, a revamped lobby, improved food and beverage offerings, as well as a new lounge and more than 16,000 square feet of renovated common areas.

The property is located at 700 N. Haven Ave., more than 1 mile from the Ontario International Airport and roughly 3 miles from the Ontario Convention Center. The 225,000-square-foot, 11,000-guest Toyota Arena can be accessed within walking distance.

Layering the capital stack of a hospitality project

Although hotels aren’t typically eligible for tax-exempt financing, nonprofit or public owners may still tap into this source of funds. Another notable example consists of Signia by Hilton, an 800-key hotel project in Indianapolis, which obtained $436.8 million in tax-exempt revenue bonds in 2023 and is set to open next year.

C-PACE funds, on the other hand, are more commonly layered within the capital stack of hotel projects. Just last month, Realberry and Proper Hospitality closed on a $298 million debt package, which included $223 million in C-PACE financing for the redevelopment of a historic hospitality property in Lake Tahoe, Nev.