2 Comments

1. 

   Jim the Realtor on January 20, 2011 at 3:57 pm

   Broadreach Capital Partners said a $186.5 million loan backed by the Park Hyatt Aviara Resort, a luxury hotel that went into default in September after cash flow dried up, was extended by five years.

   Payments were brought up to date as part of an agreement to extend the financing until Feb. 11, 2017, said Heather Turner, a director with the Palo Alto, Calif.-based real estate investment company. The debt had been scheduled to mature next year, she said. Broadreach and hotel owner Maritz Wolff & Co. hold a majority stake in the resort.

   “Because we made management changes last year and put forward a solid business plan, the special servicer agreed to an extension,” Turner said. The loan’s servicer is CWCapital Asset Management LLC. She declined to give additional details of the modification.

   A recovery in the lodging industry is aiding a drop in delinquencies on U.S. commercial mortgage-backed securities, according to Fitch Ratings. Revenue per available room, or revpar, in the top 25 U.S. markets rose to an average of $76.61 in January through November of 2010 from $71.55 a year earlier, according to Hendersonville, Tenn.-based Smith Travel Research Inc.

   CMBS delinquencies totaled 8.23 percent at the end of 2010, down from a record 8.66 percent reached in September, according to Fitch Loan Delinquency Index data released earlier this month. The revival is lifting hotel property values and enticing lenders to rework existing loans and seek out new ones, the rating service said.

   “We’ve seen a very strong rebound in hotel values,” Alan Reay, president of Atlas Hospitality Group, said in a telephone interview. “Especially larger assets have seen a huge amount of buyer interest. That’s why lenders are much more willing to work with borrowers today. If a lender chooses to foreclose, the value of the asset would be damaged.”

   Atlas is an Irvine, Calif.-based brokerage that specializes in hotels.

   Broadreach’s property, located in Carlsbad, was a Four Seasons hotel before being rebranded as a Park Hyatt in June. The loan was sent to CWCapital in August, according to Bloomberg data.

   “We made the strategic decision to have the loan go into default so it could be worked out in special servicing,” Turner said. “With Hyatt, there’s a much bigger booking engine for group business, and we’re able to leverage that.”

   Net cash flow at the 329-room resort, which was built in 1998 and has an 18-hole golf course designed by Arnold Palmer, had dropped to a negative $382,910 for the 12 months ended March 31, 2010, according to Horsham, Pennsylvania-based Realpoint LLC. It had positive cash flow of $11 million in 2008 and $3.1 million in 2009, the credit-rating company said.

   Turner wouldn’t say what the hotel’s current cash flow is.

2. 

   greenlander on January 20, 2011 at 5:26 pm

   At first, I wanted to say that this was the most contentless video clip I’ve seen in my entire life.

   Then I remembered that I saw a video clip of Brittney Spears talking about hair styles once, and that was even more contentless. So, this video clip is only the second-most contentless video clip I’ve ever seen.

   Thank God for well-written blogs like Calculated Risk, Mish and Noriel Roubini. If I had to get all my news from the mainstream media my head would explode.