Monthly Archives: January 2010

Herhold: What a closed hotel door says about downtown San Jose

Posted: 01/31/2010 12:00:00 AM PST

Years ago, as a security guard at downtown’s Fairmont Hotel, ex-San Jose police spokesman Bobby Burroughs had a frontal way of keeping out the riffraff.

When a transient walked in to use the bathroom from the First Street side, Burroughs would snap his picture and advise him against returning.

Today, Burrough’s tactics aren’t needed: The public can’t enter through the eastern side of the Fairmont. A sign says, “This entrance is accessible only with a valid guest room key.” In effect, the hotel has turned its back on the city.

Indifference from some

Most folks pass with a shrug. If they’re veterans of downtown, they might wonder why a door that was open for years is closed. People who work at the Fairmont say the sign has been up for about a year — though the door has been closed during the night for much longer.

Even city officials more or less shrug. Redevelopment Agency Director Harry Mavrogenes told me the door was closed for security — and that the front door, after all, is still open.

Me? I confess to irritation and sadness. With other reporters, I toured the Fairmont with then-operator Mel Swig before it opened in 1987.

http://www.mercurynews.com/scott-herhold/ci_14296728?nclick_check=1

Barton Hill Hotel faces foreclosure by state

By Thomas J. Prohaska
NEWS NIAGARA REPORTER
Updated: January 30, 2010, 9:38 am / 28 comments
Published: January 30, 2010, 12:30 am

LEWISTON — The state Department of Taxation and Finance plans to seize the Niagara at Barton Hill Hotel on Tuesday because of unpaid sales taxes, unless a judge agrees to the hotel’s request to block the seizure.

Edward and Diane Finkbeiner, owners of the 72-room hotel overlooking the lower Niagara River, filed a lawsuit Friday seeking to stop the state’s move.

http://www.buffalonews.com/cityregion/niagaracounty/story/940355.html?imw=Y

SoBe’s Continental Oceanfront faces foreclosure

South Florida Business Journal – by Brian Bandell

A South Beach hotel owned by Ian Schrager Co., of Studio 54 fame, could be seized in a $146.5 million foreclosure action.

Kansas City, Mo.-based Bank Midwest and Swedbank, as co-lenders, filed a notice of foreclosure on Dec. 16 against Continental Oceanfront Hotel, according to Miami-Dade County Circuit Court records.

The lawsuit was filed in May 2009 against 1825 Collins Avenue Owner, but the lenders didn’t officially issue their intent to seize the 250-room hotel until last month.

Miami attorney Steven Siff, who represents 1825 Collins Avenue, could not immediately be reached for comment.

http://www.bizjournals.com/southflorida/stories/2010/01/25/daily46.html

Investor Focus: Hotels Poised for Picking?

Investors Appear Poised To Take Advantage of Opportunities in the Distressed Hotels Arena This Year

January 27, 2010

Private equity firms and corporations seemed poised to take advantage of opportunities in the distressed hotels arena this year.

In the past week, an affiliate of Lone Star Funds agreed to acquire Lodgian Inc. for $270 million, including assumed debt. And separately, at least two hotel operating companies announced plans to ramp up their acquisitions this year.

Lodgian is one of the nation’s largest independent hotel owners and operators. The company currently owns and manages a portfolio of 34 hotels with 6,401 rooms in 20 states. Lone Star will acquire all of the outstanding common stock of Lodgian for $2.50 per share in an all-cash transaction. The price represents a premium of 67.2% over Lodgian’s average closing for the past month. The transaction is expected to close during the second quarter of 2010.

http://www.costar.com/News/Article.aspx?id=E4CA4164D61B075E1651E4083BBF80D2

Resorts still pawns in vast real estate game

The news that Intrawest’s vast ski area holdings will soon be sold in bankruptcy comes as no surprise. Its business plan was based on turning the skiing industry into a generic experience that could be attained anywhere in the world that it operated.

Like so many of its brethren in the real estate exploitation game, it offered nothing of value. Now that its powerful façade has crumbled into nothingness we can easily see it for what it was. Wish I could say I felt bad for it.

http://www.snowmasssun.com/article/20100127/OPINION/100129990/0/FRONTPAGE

Foreclosure suit hits Gold Coast corporate apartments

By: Alby Gallun Jan. 27, 2010

(Crain’s) — A fund formed to rid Swiss bank UBS A.G. of toxic assets has filed a $20-million foreclosure suit against the developer of a high-end corporate apartment building in the Gold Coast.

Reflecting the continued difficulty landlords face as they try to refinance their properties, developer Jerome Cedicci says he did not repay the loan on the 27-unit building at 70 E. Walton St. when it came due Jan. 11. Mr. Cedicci renovated the 13-story tower into luxury extended-stay suites after borrowing $20 million from UBS in 2007.

“I cannot talk about (the case) because I am in negotiations with the bank,” he says. He says he expects the suit “to be dismissed or resolved.”

UBS transferred the loan last year to the StabFund, a $39-billion fund the Swiss National Bank set up in the midst of the global credit crisis to stabilize Swiss financial markets.

http://www.chicagobusiness.com/cgi-bin/news.pl?id=36870

Colorado Farm Show favoring most Greeley hotels

Greeley is waist-deep into the Colorado Farm Show, and area hotels are booked — except perhaps one.

The Clarion Hotel and Conference Center in downtown Greeley has remarkably few cars in its lot while an event that annually draws 30,000 people to Greeley is running full tilt not two miles away.

The struggling hotel, which was issued a foreclosure notice in December, is still open and booking rooms and banquet and meeting space, manager Heather Scott said.

“We’re doing pretty good,” Scott said, adding that 25-30 rooms were booked Tuesday night, the first day of the farm show.

“We have about 35 rooms in-house booked (total), and we’re picking up.”

That’s about 20 percent booked, while other hotels from those on hotel row off of U.S. 34 and 23rd Avenue, to the Days Inn on west 10th Street, were at or nearing capacity this week.

http://www.greeleytribune.com/article/20100127/NEWS/100129710/1002&parentprofile=1001

Red Garter Hotel & Casino to go on auction block

  • Originally published January 22, 2010 at 7:25 p.m., updated January 22, 2010 at 7:27 p.m.

ELKO, Nev. (AP) — The Holder Hospitality Group’s Red Garter Hotel & Casino in West Wendover is scheduled to go up for auction on Feb. 16 at the Elko County Courthouse.

The foreclosure action was filed by Full House Inc. Full House sold the Red Garter to Holder in 2005 but holds a $6 million note that is now in default.

http://www.victoriaadvocate.com/news/2010/jan/22/bc-nv-red-garter-auction/?features&travel

Hotel Foreclosure of the Day: Scottsdale’s Montelucia Resort

By Kris Hudson

The InterContinental Montelucia Resort & Spa

After just a little more than a year in business and despite drawing a roster of buzzworthy guests, including Jay-Z and President Barack Obama, the InterContinental Montelucia Resort & Spa in Scottsdale, Ariz., is in the hands of its lenders.

German lender Eurohypo AG in March 2009 sued to foreclose on the 293-room resort after developer Crown Realty & Development Corp. defaulted on its $150 million construction loan. The completion of the foreclosure on Wednesday left the resort in Eurohypo’s hands, according to InterContinental Hotels Group, which will continue to manage the resort.

A Eurohypo representative declined to comment. Eurohypo is the lead bank of five in the loan. The former Lehman Brothers Holdings also had a $30 million mezzanine loan on the property. Crown Chief Executive Officer Robert Flaxman didn’t return calls seeking comment late Thursday.

http://blogs.wsj.com/developments/2010/01/22/hotel-foreclosure-of-the-day-scottsdales-montelucia-resort/

Retail, hotel area sold at foreclosure

By Danny Barrett Jr.
Published:

Thursday, January 21, 2010 12:29 PM CST

Wingate by Wyndham Hotel and an adjacent private cemetery along with the grounds of what was to be the $25 million Cypress Centre Marketplace were sold at foreclosure Wednesday, the second such default on high-profile commercial property in Vicksburg in a week’s time.

California-based Pacifica Loan Four, LLC bid $375,000 on nine-tenths of an acre of land once held by Tate Street Development, LLC, headed by Vicksburg developer James Hamilton, who died in April 2009. Another tract up for sale on the courthouse steps went to State Bank & Trust for $318,500. Together, the tracts are about 1.85 acres.

The property includes most of a partially completed retail development near South Frontage and Bazinsky roads. Wingate remains open for business, sales director Julie Ford said, and the foreclosure did not include the popular El Sombrero restaurant, which is on an adjacent tract and owned separately.

http://www.vicksburgpost.com/articles/2010/01/21/news/doc4b588d5bacf0b488958022.txt