Monday, September 27, 2010

MORE NORTH TEXAS HOTELS CHECKING OUT

 (Dallas Morning News) – So far in 2010, 94 North Texas hotel foreclosure filings have been recorded compared with 30 filings for the same period in 2009, according to Foreclosure Listing Service.
“Among DFW hotels, the threat of foreclosure has skyrocketed over the past two years,” said George Roddy, president of the Addison-based foreclosure-tracking firm. “For the upcoming foreclosure actions on Oct. 5, eight postings have been filed, threatening hotel projects within the area.”
Hotels with more than $120 million in debt are up for auction next month by the lenders, Foreclosure Listing Service reports. The foreclosure of the 431-room Four Seasons Resort and Club Dallas at Las Colinas with $175 million in debt was the largest such mortgage default in North Texas in about two decades.
“[Hotel owners] have done everything they can to keep the property going. They’ve used reserves and deferred maintenance,” said John Keeling with the Valencia Group. “The ones most in trouble are the properties that were refinanced in 2007 or 2008 with high debt or people who purchased a property just as we were going into recession.”
In addition to these hotels, 231 North Texas commercial properties with almost $840 million in debt are scheduled for sale next month.