Park Hyatt Aviara not the only one in trouble
from the San Diego Daily Transcript (April 25, 2013):
“Every hotel with a loan due that wasn’t properly modified during the downturn is subject to this situation,” said hotel consultant and developer Robert Rauch….Rauch said the $186 million note was based on an assumed value of about $250 million, which he said may be nearly twice the Park Hyatt’s current value.“This property was originally financed during the go-go years (of the mid-2000s),” Rauch said. “The debt is so much higher than the value that the owners only have three choices. Either they walk, modify the loan again somehow, or sell the hotel.”
