Posts Tagged Ritz-Carlton
As I expected, the foreclosure of the Bachelor Gulch Ritz-Carlton was the owner’s method to restructure his debt. It was announced on February 28, 2012, that the owners had completed the recapitalization of the Ritz-Carlton. The text of the announcement is below:
Gencom & GD Holdings Complete Recapitalization of The Ritz-Carlton, Bachelor Gulch in Avon, Colorado
MIAMI, Feb. 28, 2012
MIAMI, Feb. 28, 2012 /PRNewswire/ — Affiliates of Gencom and GD Holdings, through a joint partnership, have completed the recapitalization of the 206-room The Ritz-Carlton, Bachelor Gulch, located in Avon, Colorado, today announced Gary Lake, EVP of Gencom.
The Gencom/GD Holdings partnership has successfully completed a long term recapitalization which includes the restructuring of its loans on both the hotel and the residential component of the Resort thereby reinstating its outstanding loans to good standing. In addition to the debt restructuring, the Resort has embarked on a $10 million renovation program to refresh and enhance the property’s already unique mountain lodge decor within its guest rooms, ballroom/meeting space and public areas. The renovation program is expected to be completed in early 2014.
Opened in November 2002, The Ritz-Carlton, Bachelor Gulch is a AAA 5-Diamond luxury ski in/ski out boutique hotel nestled at the base of the world-renowned Beaver Creek Resort and is the focal point of the Bachelor Gulch Village. The Resort features the internationally acclaimed Wolfgang Puck’s Spago Restaurant, a world-class spa and has been the recipient of numerous awards and accolades since its opening, including:
- Conde Nast Traveler “2012 Gold List: The World’s Best Places to Stay” – (January 2012)
- Travel + Leisure “The World’s Best 500 Hotels” – #1 in Colorado (January 2012)
- Forbes Four-Star, AAA Five-Diamond Resort
- AAA Four-Diamond Restaurant, Spago by Wolfgang Puck
- Forbes Four-Star Spa
- Golf Digest “The 75 Best Golf Resorts” – #19 (November 2011)
- Conde Nast Traveler “#1 Spa Resort in the Continental U.S.”
Founded in 1987 by Karim Alibhai, Gencom is a leading domestic and international investment and development firm specializing in the hospitality and residential real estate sectors. By aligning itself with prominent investors and institutional relationships, Gencom has maintained a strong market position with both luxury and mixed-use hotels and resorts with significant residential components, and in other hospitality-related investments that include both portfolios and single assets. The firm continues to opportunistically grow its portfolio holdings in key resort and urban markets in the United States, Canada, Mexico, Caribbean and Europe. Gencom is headquartered in Miami with representative offices in Houston and London. For more information, visit www.gencomgrp.com.
About GD Holdings
GD Holdings, LLC is a privately held real estate investment company engaged in the acquisition, development, ownership and management of hotels and commercial real estate assets. The firm was established by Salomon Juan Marcos, Chairman and CEO of Grupo Denim (www.grupodenim.com.mx), which brings with it a tradition of decades of success in the apparel industry. The firm and Mr. Marcos employ a highly disciplined investment approach focused on value creation, capital preservation, and enduring quality.
The latest real estate news in the Valley is the foreclosure notice for the Ritz-Carlton in Bachelor Gulch and the new Haymeadow project in Eagle which was recently submitted to the town. We are also seeing fewer foreclosures. Details are included in my market update. Click on the link below to take a look.
Last week the lender that holds a $61 million note on the Ritz-Carlton building in Bachelor Gulch filed a foreclosure notice. The details are:
- Notice filed on 4/27/11
- Currently scheduled sale date is 8/24/11
- The original outstanding balance was $61 million
- The outstanding principal balance is $61 million
- The lender is Lehman Brothers Holdings Inc., Doing Business as Lehman Capital, a Division of Lehman Brothers Holdings Inc.
- The grantor is Bachelor Gulch Properties, L.L.C.
Doing a little digging, Bachelor Gulch Properties, L.L.C. is part of the Gencom Group, headquartered in Miami. From the Gencom website; “Founded in 1987 by Karim Alibhai, Gencom Group is one of the nation’s leading domestic and international investment and development firms specializing in the hospitality and residential real estate sectors.”
Don’t confuse the owner of the building with the management company of the hotel, which is Ritz-Carlton. Gencom owns the real estate and has a management contract with Ritz-Carlton to operate the hotel.
Personally, I don’t see this proceeding to a sale in August. This could be a move by Gencom to restructure their financing. I don’t see this having any impact on property values in Bachelor Gulch or skiing in Bachelor Gulch next season. Whatever does happen, it will be interesting to watch.