National CORE Secures $103 Million Bond Financing for Hyatt Regency Ontario Transformation
ONTARIO, Calif. — June 12, 2026 — National CORE, a nonprofit developer and property manager 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 upscale hospitality destination near Ontario International Airport, the organization announced Thursday.
The financing package is structured in two tranches: approximately $74.5 million in hotel revenue bonds to fund renovation, construction, and project-related costs, and approximately $27.3 million in Property Assessed Clean Energy (PACE) bonds supporting eligible energy-efficiency improvements.
Deal Structure and Investor Demand
JPMorgan served as the sole underwriter on the transaction. According to National CORE, investor demand exceeded the amount offered, enabling JPMorgan to reduce pricing to a blended interest rate for the entire financing of slightly more than 6%.
"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," said Robert Diaz, National CORE executive vice president. "This financing structure allowed us to align long-term community investment with a transformational hospitality project that will benefit the region for decades."
The financing was arranged with participation from Jones Lang LaSalle, GreenRock Capital, FGS Realty Advisors, FrostBrownTodd Gibbons, Chapman and Cutler, Orrick, and JPMorgan.
"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, GreenRock Capital, FrostBrownTodd Gibbons, Chapman and Cutler, Orrick and JP Morgan," said Fred Schuster of FGS Realty Advisors.
Marc Schillinger of JLL described the transaction as the first hospitality tax-exempt bond financing for JLL. "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+ 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," Schillinger said.
Project Team and Hospitality Real Estate Repositioning
The project brings together 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," said Patrick Schumm, senior vice president of franchise operations and owner relations for Hyatt. "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 PACE bond tranche supports the project's energy-efficiency component. Joe Euphrat, co-founder and managing principal of GreenRock, said the firm's involvement aligned with National CORE's development approach. "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," Euphrat said.
Strategic Rationale for National CORE
For National CORE, the hospitality investment is part of a broader organizational strategy. The nonprofit said the project is intended to diversify revenue sources and strengthen financial stability in support of its core affordable housing and resident services mission. The organization is also exploring the hotel as a component of workforce development through its "CORE Academy" initiative, which includes hospitality career pathways and training opportunities.
"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."
Burum added: "Our mission has always been about investing in communities in ways that create lasting impact. This project reflects that same philosophy. We are building something that serves the region today while creating opportunities for the future."
Timeline
Renovation work is ongoing. National CORE said the property is expected to officially open as Hyatt Regency Ontario in early 2027.
Property details including street address, square footage, year built, and prior occupancy metrics were not disclosed in the announcement.
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