Thursday, January 14, 2010

Rennaisance Mayflower Hotel (DC) asking for loan mod

One of the largest (5.7%) loans in BACM 2007-3 is asking for debt relief. Not completely unexpected, but we did call them last fall on a number of occasions and couldn't get a room - took that as a sign things might be okay there, despite the financials...

Although Rockwood isn’t in default on the note, it was forced to lower room rates to keep up occupancy. As a result, the hotel earned just $7.6 million in 2008 and $6 million for the first half of 2009. That’s not enough to cover the $11.5 million in debt payments that Rockwood pays each year.

Value deficiency is around 55% per Realpoint.

Room 871 is where Ashley Dupre cheered Eliot Spitzer up on a number of occasions, but here presence was apparently unable to lift the hotels flaccid financials.

The Rockwood Group has a number of other problems too, and that concerns me.

UPDATE: April 2010 - went delinquent

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