Wednesday, February 2, 2011

High profile hotels declare bankruptcy

Traveling down John Young in Orlando, towering above the local residents and business is the JW Marriot Orlando Grand Lakes hotel.

Two years ago, it would be hard to imagine that such a prestigious hotel would be part of a major hotel deal announced Tuesday.

Part of a Chapter 11 bankruptcy reorganization, JW Mariott Orlando were among 8 luxury hotels acquired in a foreclosure last week by hedge fund affiliates.

With a mounting debt of $1.53 billion, the Paulson group put five properties into bankruptcy. Debts on the Ritz-Carlton and JW Marriott would not mature until May 2012 excluding them from the filing.

The filing included Biltmore, La Quinta Resort & Club, the Grand Wailea Resorts Hotel & Spa in Hawaii, Doral Golf Resort & Spa in Miami and the Claremont Resort & Spa in Berkeley.

The late Betty Davis was said to frequent the desert oasis, La Quinta Resort & Club, during her formidable years.

Operations, staff and management will continue doing business after the Chapter 11 filing.

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