Arizona Biltmore among 5 U.S. resort hotels to file for Chapter 11 bankruptcy
The Arizona Biltmore Resort & Spa was one of five luxury resort hotels in the U.S. that filed for Chapter 11 bankruptcy on Tuesday, days after being acquired by a group that includes affiliates of hedge fund Paulson & Co Inc., Reuters reported.
Tuesday’s filing will not affect business at the Biltmore, located at 2400 E. Missouri Ave. in Phoenix.
A $1 billion mortgage on the hotels was maturing Tuesday, according to a statement by CNL-AB LLC. Besides the Biltmore, the other properties are La Quinta Resort & Club in California, Grand Wailea Resorts Hotel & Spa in Hawaii; Doral Golf Resort & Spa in Miami; and the Claremont Resort & Spa in Berkeley, Calif.
According to Reuters, 30 affiliates of CNL-AB sought protection from creditors in Manhattan’s bankruptcy court. The affiliates listed a combined $2.2 billion in assets and $1.9 billion in liabilities. CNL-AB acquired the five hotels, plus three other luxury resorts – including the JW Marriott Desert Ridge Resort and Spa – at a foreclosure auction last week, according to Bloomberg News. Desert Ridge Resort and Spa was not included in the bankruptcy filing.
The eight resorts were purchased by Morgan Stanley Real Estate in 2007 for $3.13 billion.