Fontainebleau Miami Beach, a well-known luxury hotel that was established in the 1950s, is planning to enter the bond market by issuing a $975 million commercial mortgage-backed security (CMBS) to refinance its existing debt.

The hotel aims to secure a total debt financing of approximately $1.2 billion, which will include the CMBS and a mezzanine loan of up to $225 million.

This strategic move is part of Fontainebleau's efforts to optimize its financial structure and effectively manage its obligations.

The decision to refinance reflects the continued interest in commercial real estate financing, particularly for prestigious properties like Fontainebleau, which has been a prominent luxury hospitality destination in Miami Beach for many years.