More Ws in the L Column?
Looks another W Hotel may be going into the L(oss) column. Joining the San Diego W, which defaulted on its loans this summer, may soon be the Manhattan Union Square W.
Debt backed by the W New York Union Square hotel in Manhattan, named by Conde Nast Traveler as one of the world’s top 500 hotels in 2005, may be at risk of going into default after the travel slump forced it to cut room rates.
The $115 million loan backed by the property, a landmark Beaux Arts tower at Park Avenue South and 17th Street, has a moderate risk of default “given the asset’s weak financial performance and declining hotel fundamentals nationally,” credit rating firm Realpoint LLC said in a report on Oct. 28.
Apparently being hip and expensive and debt-ridden is bad in a marketplace where debt is hard to get and people are cutting back. Shocker.
More here.