Five high-end resorts—the Claremont Resort in Berkeley, Calif.; Grand Wailea Resort in Maui; Arizona Biltmore in Phoenix; La Quinta Resort in La Quinta, Calif.; and Doral Golf Resort in Miami—were placed into bankruptcy on Feb. 1 by Paulson & Co., a hedge fund that acquired them in a recent foreclosure auction.
Paulson said the hotels were put into bankruptcy in order to avoid a $1.53 billion debt about to come due. Three other resorts acquired by Paulson in the same foreclosure deal—Florida’s JW Marriott Orlando Grand Lakes and Ritz-Carlton Orlando Grande Lakes and Arizona’s JW Marriott Desert Ridge—were not placed into bankruptcy as debts on those hotels do not mature until May of next year.
The eight resorts were originally part of a real estate portfolio acquired by Morgan Stanley Real Estate and other investors in 2007.
According to a Paulson spokesman, the company will fund operations of the bankrupt hotels with a $30 million load until further financing is secured.
