According to a report in Bloomberg, five resorts filed for bankruptcy after a lending group, including Paulson & Co., Winthrop Realty Trust and Capital Trust Inc., took over from Morgan Stanley’s real estate funds. As of Nov. 30, the resorts totaled $2.2 billion in assets and $1.9 billion in debt. The lending group will continue to keep the hotels open while they restructure the debt. The resorts are The Grand Wailea Resort Hotel & Spa in Hawaii, The La Quinta Resort & Club PGA West in California, the Doral Golf Resort & Spa in Miami; the Claremont Resort & Spa in Berkeley, Calif.; and the Arizona Biltmore Resort & Spa in Phoenix.
Chapter 11 papers were filed yesterday in U.S. Bankruptcy Court in New York City. The property bankruptcies are due to the drop in occupancy rates and average room rates, as well as the fact that hotel guests spent close to $100 million less in spas, restaurants and stores at the resorts in 2010, compared to 2007. bloomberg.com
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