Hotels Struggle in Recession: Loan Defaults Rise
San Francisco Daily Journal
October 23, 2009
Lynn K. Cadwalader- San Francisco
Global Hospitality, Resort and Timeshare Group Co-Chair Lynn Cadwalader recently published a San Francisco Daily Journal article titled "Hotels Struggle in Recession: Loan Defaults Rise."
The article discusses the dismal economic condition of the California hospitality industry, specifically addressing franchised or branded hotels which now account for over 60% of the state's troubled loans. These hotels, financed at the height of the market and not providing enough income to service their inflated debt, typically operate under long-term management or franchise agreements requiring strict compliance with brand standards. Key to the tricky business of restructuring defaulted loans associated with these hotels, Ms. Cadwalader explains, is understanding the hotel management agreement and all the parties' rights and remedies under that agreement.
Also printed in the Los Angeles Daily Journal, the article is one of a three part series. To read the full article, please click on the link below.
READ: Hotels Struggle in Recession: Loan Defaults Rise
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