Morningstar DBRS Assigns Provisional Credit Ratings to BX Trust 2025-GW

DBRS, Inc. (Morningstar DBRS) assigned provisional credit ratings to the following classes of Commercial Mortgage Pass-Through Certificates, Series 2025-GW (the Certificates) to be issued by BX Trust 2025-GW (the Trust):

-- Class A at (P) AAA (sf)
-- Class B at (P) AA (sf)
-- Class C at (P) A (high) (sf)

All trends are Stable.

The Trust is secured by the borrower's fee-simple interest in the Grand Wailea. The full-service luxury hotel features 795 guest rooms, nine F&B offerings, specialty retail outlets, and 100,000 sf of flexible indoor and outdoor meeting space. Adjacent to the resort are 120 third-party owned luxury vacation condominium villas, of which 51 currently participate in the Grand Wailea's rental program but are not part of the collateral. The hotel operates under the Waldorf Astoria flag via an agreement that expires in December 2034 and benefits from its luxury quality, strong brand affiliation, and wide range of amenities, including the recently renovated Kilolani Spa, more than 30,000 sf of pool space across 11 different pool complexes, and preferred rates at the Wailea Golf Club. The Grand Wailea has been acknowledged as a AAA Four Diamond Hotel since 1999. Wailea has one of the highest barriers to entry of any resort market in the world. Available sites are extremely rare or nonexistent, and zoning is complex and protective. Morningstar DBRS has a positive view of the subject considering the above-average quality of the collateral, prime beachfront location in a market with extremely high barriers to entry, and the significant capital invested in the property with continued near-term investment.

The mortgage loan of $1.0 billion will retire $800.0 million of existing debt, return $181.6 million of equity to the Sponsor and cover closing costs. The loan is a two-year floating-rate IO mortgage loan with three one-year extension options. The floating rate will be based on the one-month Secured Overnight Financing Rate (SOFR) plus the WA Mortgage Loan Component spread of 2.500%. The borrower has entered will enter into an interest-rate cap agreement with an assumed SOFR cap of 5.000% during the initial term. The subject was previously securitized in the Morningstar DBRS-rated BX 2018-GW transaction whose debt will be refinanced as a result of this transaction.

Since acquiring the Grand Wailea in 2018, the Sponsor has successfully executed its business plan of completing capital improvement projects that have positioned the hotel for growth. The Sponsor completed a comprehensive $128.0 million, or $161,025 per hotel key, renovation of all guest rooms, which at the time included a total of 776 guest rooms, along with upgrading each bathroom and all soft-and-case goods. Additionally, the Sponsor completed an $11.1 million, or $615,469 per hotel key, guest room expansion project that made an additional 18 keys available through the conversion of office space and a previous kid's club. In addition to the guest room renovations, approximately $55.0 million was spent to renovate the 50,000 sf open-air Kilolani Spa. The spa was recognized in the 2024 Vogue Global Spa Guide as one of the 100 best spas worldwide. Other notable capex projects include an $18.4 million upgrade to the grand dining room in the Napua Tower, an $12.4 million redesign of the flagship Humuhumunukunuku¿pua¿a restaurant, and $5.0 million in enhancements and repairs to the pools. Lastly, in April 2025, the Sponsor invested $12.3 million to expand its selection of premier dining offerings with the opening of Maui's first Nobu restaurant. The Sponsor continues to invest substantially in the property, with the capital improvement spend totaling approximately $353.7 million, or $444,925 per hotel key. Approximately $282 5 million of the capex spend has been geared toward value enhancement while the remaining $71.2 million has addressed structural upgrades throughout the resort.

Morningstar DBRS' credit rating on the Certificates addresses the credit risk associated with the identified financial obligations in accordance with the relevant transaction documents. The associated financial obligations are the related Principal Distribution Amounts and Interest Distribution Amounts for the rated classes.

Morningstar DBRS' credit rating does not address nonpayment risk associated with contractual payment obligations contemplated in the applicable transaction document(s) that are not financial obligations. For example, Spread Maintenance Premiums.

Morningstar DBRS' long-term credit ratings provide opinions on risk of default. Morningstar DBRS considers risk of default to be the risk that an issuer will fail to satisfy the financial obligations in accordance with the terms under which a long-term obligation has been issued. The Morningstar DBRS short-term debt rating scale provides an opinion on the risk that an issuer will not meet its short-term financial obligations in a timely manner.

ENVIRONMENTAL, SOCIAL, AND GOVERNANCE CONSIDERATIONS
There were no Environmental/Social/Governance factor(s) that had a significant or relevant effect on the credit analysis.

A description of how Morningstar DBRS considers ESG factors within the Morningstar DBRS analytical framework can be found in the Morningstar DBRS Criteria: Approach to Environmental, Social, and Governance Factors in Credit Ratings (May 16, 2025): https://dbrs.morningstar.com/research/454196

All credit ratings are subject to surveillance, which could result in credit ratings being upgraded, downgraded, placed under review, confirmed, or discontinued by Morningstar DBRS.

Notes:
All figures are in U.S. dollars unless otherwise noted.

The principal methodology is North American Single-Asset/Single-Borrower Ratings Methodology (February 28, 2025): https://dbrs.morningstar.com/research/448962

Other methodologies referenced in this transaction are listed at the end of this press release.

With regard to due diligence services, Morningstar DBRS was provided with the Form ABS Due Diligence-15E (Form-15E), which contains a description of the information that a third party reviewed in conducting the due diligence services and a summary of the findings and conclusions. While due diligence services outlined in Form-15E do not constitute part of Morningstar DBRS' methodology, Morningstar DBRS used the data file outlined in the independent accountant's report in its analysis to determine the credit ratings referenced herein.

The credit rating was initiated at the request of the rated entity.

The rated entity or its related entities did participate in the credit rating process for this credit rating action.

Morningstar DBRS had access to the accounts, management, and other relevant internal documents of the rated entity or its related entities in connection with this credit rating action.

This is a solicited credit rating.

For more information on Morningstar DBRS' policy regarding the solicitation status of credit ratings, please refer to the Credit Ratings Global Policy, which can be found in the Morningstar DBRS Understanding Ratings section of the website: https://dbrs.morningstar.com/understanding-ratings

A provisional credit rating is not a final credit rating with respect to the above-mentioned securities and may change or be different than the final credit rating assigned or may be discontinued. The assignment of final credit ratings on the above-mentioned securities is subject to receipt by Morningstar DBRS of all data and/or information and final documentation that Morningstar DBRS deems necessary to finalize the credit ratings.

Please see the related appendix for additional information regarding the sensitivity of assumptions used in the credit rating process.

DBRS, Inc.
22 West Washington Street
Chicago, IL 60602 USA
Tel. +1 312 332-3429

The credit rating methodologies used in the analysis of this transaction can be found at: https://dbrs.morningstar.com/about/methodologies.

North American Commercial Mortgage Servicer Rankings (August 23, 2024):
https://dbrs.morningstar.com/research/438283

Morningstar DBRS North American Commercial Real Estate Property Analysis Criteria (September 19, 2024):
https://dbrs.morningstar.com/research/439702

Legal Criteria for U.S. Structured Finance (December 3, 2024):
https://dbrs.morningstar.com/research/444064

For more information on this credit or on this industry, visit dbrs.morningstar.com or contact us at info-DBRS@morningstar.com.