Yesterday I blogged that DC's Watergate Hotel is going up on the auction block. Unfortunately, it's not the only venue in the country right now facing major financial problems.
The San Francisco Business Times recently reported that the 277-room Four Seasons Hotel in San Francisco has defaulted on a $90 million loan. This comes on the heels of fellow San Francisco property the Renaissance Stanford Court Hotel in Nob Hill defaulting on an $89 million loan.
Meanwhile, in Pittsburgh, the 713-room Hilton Pittsburgh was set to have its assets sold next week at a sheriff's sale in order to pay back debts owed to a plumbing company and other hotel. However, Salego Plumbing Co. dropped its request Wednesday, saying a check from Hilton owner Shubh Hotels LLC had been received and cleared. Gokul Inc., which runs the Days Inn on Banksville Road, has yet to receive a check.
Finally, in Waikiki, Oahu, the Ilikai Hotel has stopped operations due to excessive operating losses. However, the good news from this story is that the hotel announced it will re-open with a new management team and structure, but it has yet to set a date.
In today's tough economy, hotels are obviously taking a major hit. It's unfortunate that news of troubled properties keeps popping up, but it's just another reason to keep on meeting.