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By Lori
Weisberg, The
San Diego
Union-Tribune April, 2013 CARLSBAD — Owners of the Park Hyatt Aviara have missed two months of loan payments, a sign that the luxury resort is facing the same financial woes that more than two years ago forced it to restructure its heavy debt. Fitch Ratings reports that the hotel’s $186 million loan was transferred on Wednesday to a special loan servicer after the owners were 60 days past due on their payments. A 60-day delinquency is a standard trigger for such a move, said Mary MacNeill, a managing director with Fitch Ratings. The role of a special servicing firm, working on behalf of the lender, is to find the best recourse for handling troubled commercial loans, which can include negotiating with the borrower to possibly modify the loan. Although the hotel’s owners, Broadreach Capital Partners and Maritz, Wolff & Co., were able to modify and extend their loan terms in early 2011, MacNeill said Fitch remains concerned about the hotel’s performance. “Modifications typically offer some debt service relief to the borrower, in order for the property to recover,” she wrote in an email. “However, the Aviara loan was still not able to pay its debt service.” Representatives of Broadreach did not return requests for a comment. The most recent loan repayment problems are reminiscent of what occurred in late 2010 when the owners defaulted on their payments and months later were able to reduce the interest rate on their loan and extend the maturity date to Feb. 11, 2017. Especially telling is the sharp drop in both the hotel’s occupancy rate and average room rates since 2007, when the original loan was issued. http://www.utsandiego.com/news/2013/apr/19/park-hyatt-aviara-loan-default/ |
Contact: Lori Weisberg, Staff Writer San Diego Union-Tribune 350 Camino de la Reina San Diego, CA 92102 619-293-2251 [email protected] |