UNITE HERE Draws Attention to Continuing Debt Woes at Columbia Sussex Corporation; Five Loans in Trouble

NEW YORK--()--UNITE HERE released a report today for prospective lenders who might consider refinancing the debt of the Columbia Sussex Corporation-owned Hilton Anchorage Hotel, which matures in March 2017. The report provides lenders with information on current debt issues at Columbia Sussex as well as past noteworthy debt-related events at the company. It details that:

  • Foreclosure is being pursued at Columbia Sussex-owned hotels Marriott Phoenix Airport and Renaissance Philadelphia Airport after loans at both properties were reported to have defaulted.
  • Columbia Sussex’s East Lansing Marriott loan matured on June 1st, 2016 and is reportedly in delinquent status.
  • Loans for both the Marriott Knoxville in TN and the Marriott Jackson in MS also matured on June 1st, 2016 and in both cases the lender has reportedly engaged counsel and will proceed with foreclosure.
  • In 2009 the company owned 72 hotels with 24,000 rooms, but by 2012 its portfolio had shrunk to 41 hotels with 13,000 rooms. Much of the portfolio was lost as a result of debt issues.
  • Columbia Sussex lost several of its gaming assets to bankruptcy following the New Jersey Casino Control Commission (NJCCC)’s denial of a subsidiary’s license renewal in Atlantic City in 2007.

Today, Columbia Sussex has 38, a number that could shrink in light of the pending delinquencies described above.

Potential lenders will find the report useful in their risk analysis of the company in assessing whether to refinance the Hilton Anchorage’s debt, particularly in light of what may become a challenging financial environment for the hotel industry.

Read the report: http://unitehere.org/wp-content/uploads/LenderReport4.pdf

UNITE HERE is a labor union that represents 270,000 working people across Canada and the United States. Its members work in the hotel, gaming, food service, manufacturing, textile, distribution, laundry, transportation, and airport industries. UNITE HERE Local 878 represents workers at the Hilton Anchorage where there is currently an active labor dispute.

Contacts

UNITE HERE
Shelli Sareen, 416-384-0983 x315

Contacts

UNITE HERE
Shelli Sareen, 416-384-0983 x315