(Bloomberg) -- The owner of the former Trump International Hotel in Washington is recapitalizing the property with $75 million from investors led by Mavik Capital Management.

The new cash is intended to reduce leverage levels on the property, which was rebranded as a Waldorf Astoria in 2022, according to people familiar with the matter, who asked not to be named discussing private information.

The Waldorf Astoria hotel is located on Pennsylvania Avenue near the Washington Monument. The owner, CGI Merchant Group, purchased the hotel in 2022 from the Trump Organization. The building became well known during former President Donald Trump’s administration as a gathering spot for politicians and lobbyists. 

The new capital comes at a time when higher interest rates have slowed dealmaking in the hotel industry. The Washington lodging market was hit hard by the pandemic-era pause in business travel and has since started to recover. It had the fastest growth in revenue per available room among the top 25 US markets last year, according to data provider STR.

Mavik, founded by Vik Uppal, focuses on commercial real estate credit and special situations and has about $1 billion in assets under management. The company has also struck deals for apartment properties. 

A CGI spokesperson declined to comment. A representative for Mavik didn’t immediately respond to a request for comment. 

(Updates with details on Washington hotel market, Mavik starting in fourth paragraph)

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