The San Diego Union Tribune is reporting today that the owner of the former Four Seasons Aviara Hotel in Carlsbad, California (re-flagged in June as a Park Hyatt) has told its lenders that it can no longer afford its loan payments.
The Four Seasons Aviara Residences timeshares, located adjacent to the hotel, are part of the Aviara Resort and continue to be managed by Four Seasons.
A long-running dispute between Four Seasons, former manager of the hotel, and the hotel owner, Broadreach Capital Partners, culminated two months ago with the dismissal of Four Seasons as hotel manager and re-flagging as the Park Hyatt Aviara, according to published reports.
A number of Four Seasons Aviara timeshare owners reportedly have expressed concern that the value of their timeshare investments is declining first because of the loss of Four Seasons as the flag and management of the hotel and now by a threatened hotel loan default.
Broadreach has notified it lenders, securitized by Wachovia Bank Commercial Mortgage Trust, that it can no longer service payments on the hotel's $186-million loan, according to the Union Tribune.
The paper reports that an evaluation issued earlier this year by Fitch ratings on the Wachovia Trust points out that the Aviara hotel's performance "significantly deterioriated in 2009" and "is expected to further decline in 2010".
-- Edited by countryjim at Aug 28, 2010 9:45 AM PDT