Hotel Burnham defaults

Crain's reports (sorry no link) that the Chicago Hotel Burnham missed it's July and August payments.

“We’re not in a desperate situation here,” Mr. McCaffery says. “There’s no intention on my or Barry Mansur’s part to let this hotel go.”

The problem, according to Mr. McCaffery, is that he can’t start restructuring negotiations until the loan falls into default. A CMBS borrower typically can seek relief only after a loan is transferred to a so-called special servicer hired to work out problem loans in the pool. That hasn’t happened yet with the Hotel Burnham loan.

The hotel could cover its monthly payments if necessary, Mr. McCaffery says, but “you can’t get their attention until you default.”

The loan is in GG10 and has a 0.81x NCF DSCR (despite what the story says about the "Bloomberg data" where the property is cash flowing) - the NOI DSCR is 1.01x for the 1Q 09 TTM.

Ashford testing Centerline's Resolve on Westin O'Hare

The WSJ reports that Ashford is trying to negotiate a loan mod on the Westin O'Hare hotel (525 keys)

Hotel owner Ashford Hospitality Trust Inc. is negotiating to revise the terms of its $101 million securitized mortgage on the 525-room Westin O'Hare hotel near Chicago's O'Hare International Airport.

Ashford, which owns 103 hotels, aims to strike a deal to keep the Westin O'Hare rather than forfeiting it to the special servicer overseeing the mortgage, Ashford executives say. But Ashford wants the payments it must make on the mortgage reduced because the hotel no longer generates enough cash flow on its own to cover them.

This follows the Hotel Burnham (122 keys)that defaulted in August, the Amalfi (215 keys) that is in Special Servicing currently, the Crown Plaza (Lodgian) in Worcester that lodgian is turning the keys in on (not in the Lodgian portfolio), InterContinental Chicago O’Hare (556 keys) that defaulted in August.

Ashford has a total of 103 hotels. I'll update this later with deal names.