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June 7, 2009 at 8:07 PM #15839June 7, 2009 at 10:00 PM #412068
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ParticipantA couple of interesting things about this story — first, that Starwood was smart enough to unload that hotel in June 2006, right at the top of the bubble. Second, that the REIT in default has enough cash to keep paying the mortgage, they’re just choosing not to.
San Clemente, Calif.-based Sunstone said its loan special servicer has declined the company’s attempts at renegotiating interest payments lower. Since Sunstone feels the W San Diego is now worth much less than what it owes, the company would rather turn it over to the bank than have hefty interest payments continue to drain cash from its balance sheet.
“While the company maintains more than adequate liquidity to support or repay this mortgage, we believe a conveyance of this hotel in settlement of the debt would be in the best interest of our stockholders,” Chief Financial Officer Ken Cruse, said in a statement.
Why should we expect individual homeowners to do anything different when they’re underwater on their loans?
June 7, 2009 at 10:00 PM #412304ParticipantA couple of interesting things about this story — first, that Starwood was smart enough to unload that hotel in June 2006, right at the top of the bubble. Second, that the REIT in default has enough cash to keep paying the mortgage, they’re just choosing not to.
San Clemente, Calif.-based Sunstone said its loan special servicer has declined the company’s attempts at renegotiating interest payments lower. Since Sunstone feels the W San Diego is now worth much less than what it owes, the company would rather turn it over to the bank than have hefty interest payments continue to drain cash from its balance sheet.
“While the company maintains more than adequate liquidity to support or repay this mortgage, we believe a conveyance of this hotel in settlement of the debt would be in the best interest of our stockholders,” Chief Financial Officer Ken Cruse, said in a statement.
Why should we expect individual homeowners to do anything different when they’re underwater on their loans?
June 7, 2009 at 10:00 PM #412551ParticipantA couple of interesting things about this story — first, that Starwood was smart enough to unload that hotel in June 2006, right at the top of the bubble. Second, that the REIT in default has enough cash to keep paying the mortgage, they’re just choosing not to.
San Clemente, Calif.-based Sunstone said its loan special servicer has declined the company’s attempts at renegotiating interest payments lower. Since Sunstone feels the W San Diego is now worth much less than what it owes, the company would rather turn it over to the bank than have hefty interest payments continue to drain cash from its balance sheet.
“While the company maintains more than adequate liquidity to support or repay this mortgage, we believe a conveyance of this hotel in settlement of the debt would be in the best interest of our stockholders,” Chief Financial Officer Ken Cruse, said in a statement.
Why should we expect individual homeowners to do anything different when they’re underwater on their loans?
June 7, 2009 at 10:00 PM #412617ParticipantA couple of interesting things about this story — first, that Starwood was smart enough to unload that hotel in June 2006, right at the top of the bubble. Second, that the REIT in default has enough cash to keep paying the mortgage, they’re just choosing not to.
San Clemente, Calif.-based Sunstone said its loan special servicer has declined the company’s attempts at renegotiating interest payments lower. Since Sunstone feels the W San Diego is now worth much less than what it owes, the company would rather turn it over to the bank than have hefty interest payments continue to drain cash from its balance sheet.
“While the company maintains more than adequate liquidity to support or repay this mortgage, we believe a conveyance of this hotel in settlement of the debt would be in the best interest of our stockholders,” Chief Financial Officer Ken Cruse, said in a statement.
Why should we expect individual homeowners to do anything different when they’re underwater on their loans?
June 7, 2009 at 10:00 PM #412769ParticipantA couple of interesting things about this story — first, that Starwood was smart enough to unload that hotel in June 2006, right at the top of the bubble. Second, that the REIT in default has enough cash to keep paying the mortgage, they’re just choosing not to.
San Clemente, Calif.-based Sunstone said its loan special servicer has declined the company’s attempts at renegotiating interest payments lower. Since Sunstone feels the W San Diego is now worth much less than what it owes, the company would rather turn it over to the bank than have hefty interest payments continue to drain cash from its balance sheet.
“While the company maintains more than adequate liquidity to support or repay this mortgage, we believe a conveyance of this hotel in settlement of the debt would be in the best interest of our stockholders,” Chief Financial Officer Ken Cruse, said in a statement.
Why should we expect individual homeowners to do anything different when they’re underwater on their loans?
June 7, 2009 at 10:25 PM #412073DataAgent
ParticipantStarwood never owned the W Hotel San Diego. In fact, Starwood owns very few hotels. Starwood just manages hotels under brand names like W, Sheraton, Westin, St Regis etc.
Sunstone bought the W Hotel San Diego from Gatehouse Capital in 2006. Gatehouse got lucky with that sale. They still own a lot of dogs.
June 7, 2009 at 10:25 PM #412309ParticipantStarwood never owned the W Hotel San Diego. In fact, Starwood owns very few hotels. Starwood just manages hotels under brand names like W, Sheraton, Westin, St Regis etc.
Sunstone bought the W Hotel San Diego from Gatehouse Capital in 2006. Gatehouse got lucky with that sale. They still own a lot of dogs.
June 7, 2009 at 10:25 PM #412556ParticipantStarwood never owned the W Hotel San Diego. In fact, Starwood owns very few hotels. Starwood just manages hotels under brand names like W, Sheraton, Westin, St Regis etc.
Sunstone bought the W Hotel San Diego from Gatehouse Capital in 2006. Gatehouse got lucky with that sale. They still own a lot of dogs.
June 7, 2009 at 10:25 PM #412622ParticipantStarwood never owned the W Hotel San Diego. In fact, Starwood owns very few hotels. Starwood just manages hotels under brand names like W, Sheraton, Westin, St Regis etc.
Sunstone bought the W Hotel San Diego from Gatehouse Capital in 2006. Gatehouse got lucky with that sale. They still own a lot of dogs.
June 7, 2009 at 10:25 PM #412774ParticipantStarwood never owned the W Hotel San Diego. In fact, Starwood owns very few hotels. Starwood just manages hotels under brand names like W, Sheraton, Westin, St Regis etc.
Sunstone bought the W Hotel San Diego from Gatehouse Capital in 2006. Gatehouse got lucky with that sale. They still own a lot of dogs.
June 8, 2009 at 7:16 AM #412113ParticipantSunstone purchased the W San Diego in June 2006 for $96 million from developers including Starwood Hotels, Gatehouse Capital and Multi-Employer Development Partners. The hotel carries a $65 million, fixed-rate commercial mortgage-backed securities loan with a 6.14 percent interest rate, which comes due Jan. 1, 2018. The mortgage principal translates to more than $250,000 in debt per room.
Sounds from that quote like Starwood at least owned a piece of it.
June 8, 2009 at 7:16 AM #412349ParticipantSunstone purchased the W San Diego in June 2006 for $96 million from developers including Starwood Hotels, Gatehouse Capital and Multi-Employer Development Partners. The hotel carries a $65 million, fixed-rate commercial mortgage-backed securities loan with a 6.14 percent interest rate, which comes due Jan. 1, 2018. The mortgage principal translates to more than $250,000 in debt per room.
Sounds from that quote like Starwood at least owned a piece of it.
June 8, 2009 at 7:16 AM #412596ParticipantSunstone purchased the W San Diego in June 2006 for $96 million from developers including Starwood Hotels, Gatehouse Capital and Multi-Employer Development Partners. The hotel carries a $65 million, fixed-rate commercial mortgage-backed securities loan with a 6.14 percent interest rate, which comes due Jan. 1, 2018. The mortgage principal translates to more than $250,000 in debt per room.
Sounds from that quote like Starwood at least owned a piece of it.
June 8, 2009 at 7:16 AM #412662ParticipantSunstone purchased the W San Diego in June 2006 for $96 million from developers including Starwood Hotels, Gatehouse Capital and Multi-Employer Development Partners. The hotel carries a $65 million, fixed-rate commercial mortgage-backed securities loan with a 6.14 percent interest rate, which comes due Jan. 1, 2018. The mortgage principal translates to more than $250,000 in debt per room.
Sounds from that quote like Starwood at least owned a piece of it.
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