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Bankruptcy at heart of $1.46 billion hotel deal including La Quinta

August 22, 2013|By Roger Vincent
  • The grounds of La Quinta Resort in La Quinta.
The grounds of La Quinta Resort in La Quinta. (Gina Ferazzi / Los Angeles…)

Although the California hotel recovery is in full bloom with rising room rates and occupancy, signs of the bad old days during the last economic downturn were still in evidence as a report showed that one of the state’s largest hotel sales of the year was based on a bankruptcy.

The government of Singapore’s sovereign wealth fund bought the 2,000-acre La Quinta Resort & Club out of bankruptcy in February from New York hedge fund Paulson & Co. and Winthrop Realty Trust of Boston, according to consulting firm Atlas Hospitality Group.

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The 796-room La Quinta, which boasts five golf courses, 23 tennis courts and 535 fireplaces, was one of four hotels sold in a package to the Singapore fund. The luxurious inn -- it also has 41 swimming pools -- was valued at $109 million in a breakdown of the $1.46 billion transaction.

Also included in the deal were the 279-room Claremont Hotel Club & Spa in Berkeley valued at $511 million, the 780-room Grand Wailea Resort & Spa in Wailea, Hawaii, and the 740-room Arizona Biltmore & Spa in Phoenix.

The hotels in La Quinta, Wailea and Phoenix are operated by Waldorf Astoria Hotels & Resorts.

Singapore’s sovereign wealth fund owns hotels in the United States, France, Britain, Australia, China and India.

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roger.vincent@latimes.com

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