RCA in the commercial property press:


Chapter 12: A New Identity


Wednesday, December 23, 2009
Source: The Wall Street Journal


The Wall Street Journal reports: Yes, there is life after bankruptcy. But for some hotels, that also means a new identity.

Investors who bought a 341-room Sheraton hotel in downtown Orlando, Fla., in November plan to convert it next month to Sonesta International Hotels Corp.'s first franchised property in the U.S. Glenmont Capital Management and Resolution Services LLC bought the hotel out of bankruptcy for $8 million.

Sheraton had opted to quit managing the property, so the new owners brought in Sonesta. The company manages 15 hotels and has franchised—but doesn't manage—another 15 internationally.

The purchase of the Orlando hotel by Glenmont and Resolution came roughly 18 months after former owner CF Hospitality Inc. put that property and another hotel in Miami under Chapter 11 bankruptcy protection.

Real Capital Analytics has tracked $1.3 billion of sales of hotels in foreclosure or bankruptcy since the recession's start. Lenders are "becoming much more willing sellers under these circumstances, more willing to take the write-down today and get [the properties] off their balance sheet," Glenmont managing principal Lawrence Kestin said.


View the full article on The Wall Street Journal: Chapter 12: A New Identity


Articles related to this topic:

Bullet Point Istithmar May Lose Control of W Union Square Hotel in Auction
Bullet Point Mandarin Oriental May Acquire Luxury Hotel Brands
Bullet Point Dubai World’s Istithmar Loses Control of the W Union Square Hotel
Bullet Point Distressed hotels could find buyers in 2010

Posted by: Mark Alferman

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