Wednesday, February 22, 2012

Four more Phoenix-area resorts hit by foreclosure crisis - bizjournals Business Travel Guide

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Four more large properties have been serveed with notices oftrustee sale, and the venerable Camelback Inn, a JW Marriott Resort Spa, has been notified of a $2.7 millionh mechanics lien, according to informatio n provided by , a Mesa-based real estate researcj firm. • Xona Resort Suites in Scottsdale. • Carefree Resorgt & Villas. • Embassy Suites • Crowne Plaza Phoenix in north Phoenix. All four hoteles remain open and are accepting but it’s unknown how foreclosure proceedinges will affect their operations. Since the firsr of the year, the Valley’s hospitalityh industry has been rocked withbad news.
The developerds of the W Scottsdale hote l and the InterContinental MonteluciaResorgt & Spa in Paradise Valleyy were notified of trustee sales when they were unablr to pay back construction loans. Both opened with much fanfare last year and continuwe to operate despite thefinancial cloud. Both auctions have been delayed repeatedly, but trustee Scotgt Klundt, a partner at LLP, said the sales are stil on. The foreclosure sale for the Montelucia is schedulesd forJune 29, and the sale for the W is schedulexd for July 2.
Also on tap is the auction of the historic WigwamResort & Spa in Litchfielc Park, which dates back to 1929, when it was builr as a getaway for employees of the Goodyearf Tire & Rubber Co. That foreclosure sale is set forJuly 9. The latesty batch of foreclosures includes the Carefre eResort & Villas. Formerly the Carefree Inn, it was built in the For Carefree MayorDick Schwan, the resort’x financial situation reaches far beyonx nostalgia. “We’ve got about 10 providerd that give us our sales tax and most ofour (operating) so we’re very familiar with what’x going on,” he said.
He and other town official have been aware of the problem forseveral months. The owner, Carefree Mule Train Ventures LLC, is in bankruptcy, he “Within the last several days, we’ve learned that the Chaptedr 11 has been converted toChapted 7. We understand the resort is now operating underfa receivership,” Schwan said. Chapter 11 allows a compangy to reorganize, while Chapter 7 involvees liquidationof assets. The LLC, which is identifie d in the trustee notice as a South Dakotaa entity in care of a SanFranciscop address, owns three propertiesw including the Carefree Resort, Schwan said. “Our understandinfg is that the Carefree property has a positive cashflow ...
and that the receivetr is looking for a he said.

1 comment:

  1. Your information is quite outdated. The Crowne Plaza Phoenix North was purchased in 1/2010, and has since undergone a $3.5 million property-wide renovation, with even more to come. We are absolutely not in foreclosure; I can only assume that you are referring to an article written back in 7/2009, when the hotel was in financial crisis. Different owner, different management company, and we are now a different hotel. I invite you to come by and see the changes. I would appreciate a correction, as this casts a negative light on our hotel.
    Sincerely,
    David Croughan
    General Manager
    Crowne Plaza Phoenix

    ReplyDelete