CMBS Debt breakdown on Coronado San Diego

CORONADO, California—The venture owning the Hotel del Coronado in San Diego is currently working to restructure the debt on the property.  Strategic Hotels & Resorts, which leads the venture with 45% ownership, disclosed that negotiations are underway to restructure the property’s mortgage and mezzanine loans, according to a 10-Q filed 4 November with the Securities and Exchange Commission.

“Due to the severe contraction in the credit markets, the reduction in real estate values generally across the luxury hospitality market, and the size and complexity of the existing financing, there can be no assurance that the Hotel Venture … will be able to refinance or restructure this indebtedness or cure or receive a waiver for an event of default if one were to occur,” Strategic said in the SEC filing.

The venture has US$610 million of non-recourse mortgage and mezzanine debt financings and a US$20 million non-recourse revolving credit facility, which are secured partially by the mortgage on the property. The mortgage and mezzanine debt financings and revolving credit facility mature 7 January 2011. From Hotel News Now….

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