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The owner of the Hotel del Coronado, which had been
facing a January deadline to retire more than $600 million in debt, has
received an extension until Feb. 9.
Strategic Hotels and Resorts, part of a joint venture
that has owned the 757-room property since 2006, said the extension
will allow all the affected parties time to continue negotiating a
long-term restructuring. It cautioned, however, that the extension does
not guarantee that the matter will be resolved.
A portion of the hotel’s debt — $260 million — had been moved into
special servicing last year in an effort to negotiate a restructuring
deal that would allow the ownership to extend the term of the loan.
Typically, loans that are packaged as securities and then sold off to
investors are transferred to a special servicer when the loan has
either gone into default or is in imminent danger of doing so. |
Photo by Nelvin C. Cepeda
Owners of the Hotel del Coronado
hope a loan extension will forestall a default on their debt
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