Hotel Online Special Report



advertisement
Pacific Islandia California Inc., Owner of the 489-room
Sheraton Anaheim Hotel, Files for Bankruptcy Protection;
Bankruptcy Over a Dispute, Not Results
-
By Sandi Cain 
February 2003

Pacific Islandia California Inc., owner of the 489-room Sheraton Anaheim Hotel, has filed for bankruptcy protection.

Anaheim-based Pacific Islandia said the filing stems from a dispute with the hotel�s lender, Littleton, Colo.-based MONY Realty Capital Inc., part of New York's MONY Group Inc.
 

The filing isn't a result of the hotel�s performance or the downturn in tourism in the past year, said Libby Zarrahy, general manager of the Sheraton hotel and a director of the ownership group. Hotel service won�t be disrupted during the reorganization, she said. 

The dispute between Pacific Islandia and MONY centers on �continued delays in disbursement of funds belonging to Sheraton Anaheim,� Zarrahy alleged.

�In order to protect these funds and 


Sheraton Anaheim Hotel
900 S. Disneyland Drive
Anaheim, California
receive assurances that our funds will be protected, we selected to file the reorganization,� she said. 

Sheraton legal counsel John Graham, a partner in the Century City law firm of Jeffer, Mangels, Butler & Marmaro LLP, said he believed MONY Realty planned to support a request to continue hotel operations, pay vendors and workers and use all revenue toward hotel operations during the bankruptcy. 

A hearing on the request was set for late last week. 

�We expect the court to agree,� Graham said. 

A MONY official said "it wouldn't be appropriate to make a public comment" for this story.

Steven Spector, another member of the Jeffer, Mangels legal team, said the Sheraton franchise at the hotel is �not in jeopardy.�

Sheraton parent Starwood Hotels & Resorts Worldwide Inc. of White Plains, N.Y., is �extremely supportive� of the bankruptcy move, he said.

A Starwood representative couldn�t be reached for comment.

�The Chapter 11 (bankruptcy) was not filed due to vendor issues,� Spector said. �Vendors will be paid and no interruption of services is expected.�

The hotel has performed well in recent months and �exceeded projections� for January and February, Spector said.

Talks between MONY and Pacific Islandia are expected this week.

�We�re cautiously optimistic that it will lead to a positive resolution,� Spector said.

Graham said the hotel is planning a renovation and the owners recently acquired the adjacent Spaghetti Station restaurant that also is set for a remake.

The Sheraton Anaheim, built in 1969, is one of the oldest full-service hotels in the Disneyland area and ranked No. 10 on the most recent Business Journal list of the county�s largest hotels. 

It has 20,000 square feet of meeting space, putting it among the largest 15 meetings facilities in OC.

Anaheim-based Pacific Islandia Guam Inc., parent company of Pacific Islandia California, acquired the hotel for $27.3 million in 1990 in a foreclosure sale by Sanwa Bank, according to records. 

The hotel sits on land owned by an individual trust. 
 

Sandi Cain is a freelance writer and contributor to the Orange County Business Journal and meetings industry
publications. She specializes in hospitality, tourism and travel. Cain holds bachelor�s and master�s degrees in education from Kent State University in Ohio, where she majored in social studies. A former high school teacher, she has written for niche-market sports publications in the U.S., England and Australia and formerly worked in both the printing and high-tech industries. A Cleveland, Ohio native, Cain hasbeen a resident of Laguna Beach since the late �70s. She enjoys travel, gardening, reading and spoiling her three cats.

###

Contact:
Sandi Cain
Laguna Beach CA
949-497-2680
[email protected]

Also See Security Detail; High-Profile Meetings Have Police on Special Alert / Sandi Cain / January 2003
New Hotels, Remodelings Spur Growth in Orange County Meeting Space Amid Slow Recovery / Sandi Cain / January 2003
Security Detail; High-Profile Meetings Have Police on Special Alert / Sandi Cain - January 2003
Tarsadia Hotels Building Residence Inns in Garden Grove, San Diego, Buys the 201-room Crowne Plaza in Las Vegas / Sandi Cain / Dec 2002
Bucking Convention - Anaheim Center Expansion Seems to Pay Off as Other Cities Struggle / Sandi Cain / Nov 2002
Ayres Breaks Ground on L.A. Hotel, Expanding Two Others / Sandi Cain / Oct 2002
Orange County California's Hotels, Convention Center Upbeat Despite New Competition and Weak Economy / Sandi Cain / Aug 2002
Ritz, Surf & Sand, Vie With Beach Resort Newcomers Along California's Orange County Coast; Almost 1,000 rooms Set to be Added / Sandi Cain / Aug 2002
Orange County California's Hotels, Convention Center Upbeat Despite New Competition and Weak Economy / Sandi Cain / Aug 2002
Montage Founder, Alan J. Fuerstman Sees Big Things for Laguna Colony Luxury Hotel, Acquired from Marriott International for $190 million / Sandi Cain / July 2002
Orange County�s $6 billion Annual Tourism Industry Shaking off the Downturn / Sandi Cain / May 2002
The Orange Riviera - New Luxury Hotels and Renovation Projects Transforming OC�s Coast / Sandi Cain / May 2001 
Orange County Hoteliers Hope for a Solid Summer Season to Regain Momentum / May 2002 / Sandi Cain
Hotel Brokers: From Sales to Consultants / Sandi Cain / Jan 2002 
Tourism Officials Focus on Security of Events and Sites as Key to Attracting Visitors / Sandi Cain / Jan 2002 
Orange County Travel Agencies Bear Brunt Last Week, Waiting For Fallout / Sandi Cain / Sept 2001 
St. Regis Monarch Beach Resort & Spa Opening Adds to Competition in South Orange County California / Sandi Cain / Aug 2001 
The Orange Riviera - New Luxury Hotels and Renovation Projects Transforming OC�s Coast / Sandi Cain / May 2001 
Ayres Hotel Group Expands, Rebrands / Sandi Cain / March 2001
Orange County�s Hoteliers Relieved as Anaheim Convention Center Expansion Boosted Occupancy and Rates During Past Year / Sandi Cain / May 2001
Indomitable Disney / Bad News Doesn�t Tarnish the Mouse; Slowing Economy Another Matter /  / Feb 2001 
Orange County Hotels Poised for Meetings Growth; Newcomers Help Bolster Total Space; Disneyland Hotel Still No. 1 / Sandi Cain / Jan 2001 


To search Hotel Online data base of News and Trends Go to Hotel.Online Search

Home | Welcome! | Hospitality News | Classifieds | Catalogs & Pricing | Viewpoint Forum | Ideas/Trends
Please contact Hotel.Online with your comments and suggestions.