Deac in the Wake
Contributor
Just an FYI in case any SBers are planning GCM trips and looking at booking at the Casuarina.
Cayman Islands News
Westin Casuarina resort faces financial turmoil
Posted on Tue, 11/02/2010 - 19:53 in Business
(CNS): According to reports in the US media, Columbia Sussex Corp, which owns the Westin Casuarina Resort & Spa in the Cayman Islands, is facing possible foreclosure on the loan it has against the hotel after demand slumped and the borrower said it can't cover debt payment shortfalls. The reports are based on information from the credit rating agency Realpoint LLC. The status of the loan on the Cayman hotel "was reported as 'foreclosure' for October as compared to current in the prior month," Realpoint said. Columbia Sussex is said to be requesting a loan modification. CNS has contacted the general manager of the hotel and is waiting on a response.
The 343-room Westin Casuarina on Seven Mile Beach is reportedly backing a $137.2 million loan that was transferred to a special servicer in February. The property was built in 1994 and is operated by Starwoods Hotels & Resorts Worldwide. The reports state that a slump in the tourism industry cut demand at the hotel, with revenue per room falling to $184 last year from $258 in 2008 and $293 in 2007.
"The borrower advised that it was no longer possible to cover debt service shortfalls and requested approval to use fund in the curtailment account to cover debt service shortfalls; however, the loan documents will not allow that request," Realpoint said in its report.
Columbia Sussex, which ranked as the largest privately owned business in Greater Cincinnati and Northern Kentucky on the Deloitte Cincinnati USA 100 list, is struggling with $2.4 billion in debt, according to Trepp LLC, a New York seller of commercial mortgage data. The company owns 66 hotels under brands including Marriott, Sheraton and Hilton.
Theodore Mitchel, Columbia Sussex's CFO, said Tuesday the company had no comment, reports from Cinncinatti revealed.
Cayman Islands News
Westin Casuarina resort faces financial turmoil
Posted on Tue, 11/02/2010 - 19:53 in Business
(CNS): According to reports in the US media, Columbia Sussex Corp, which owns the Westin Casuarina Resort & Spa in the Cayman Islands, is facing possible foreclosure on the loan it has against the hotel after demand slumped and the borrower said it can't cover debt payment shortfalls. The reports are based on information from the credit rating agency Realpoint LLC. The status of the loan on the Cayman hotel "was reported as 'foreclosure' for October as compared to current in the prior month," Realpoint said. Columbia Sussex is said to be requesting a loan modification. CNS has contacted the general manager of the hotel and is waiting on a response.
The 343-room Westin Casuarina on Seven Mile Beach is reportedly backing a $137.2 million loan that was transferred to a special servicer in February. The property was built in 1994 and is operated by Starwoods Hotels & Resorts Worldwide. The reports state that a slump in the tourism industry cut demand at the hotel, with revenue per room falling to $184 last year from $258 in 2008 and $293 in 2007.
"The borrower advised that it was no longer possible to cover debt service shortfalls and requested approval to use fund in the curtailment account to cover debt service shortfalls; however, the loan documents will not allow that request," Realpoint said in its report.
Columbia Sussex, which ranked as the largest privately owned business in Greater Cincinnati and Northern Kentucky on the Deloitte Cincinnati USA 100 list, is struggling with $2.4 billion in debt, according to Trepp LLC, a New York seller of commercial mortgage data. The company owns 66 hotels under brands including Marriott, Sheraton and Hilton.
Theodore Mitchel, Columbia Sussex's CFO, said Tuesday the company had no comment, reports from Cinncinatti revealed.
