Tag Archives: Paulson & Co
The Claremont Resort and Spa, whose gleaming white presence is a defining feature of the East Bay Hills, is for sale once again.
Paulson & Co., a New York based hedge fund, and Winthrop Realty Trust have put the $279-room hotel on the market for $80 million, according to a report by Bloomberg News.
The Arizona Biltmore in Phoenix is also for sale for $250 million. The Paulson–led investor groups seized control of the Claremont and four other luxury hotels from Morgan Stanley’s real estate funds and put them into Chapter 11 bankruptcy in February 2011. The sales are an attempt to bring the properties out of bankruptcy, according to Bloomberg.
Around lunchtime on Wednesday men in dark business suits were wandering around the Claremont’s gym, contrasting sharply with people sweating in their spandex and shorts. … Continue reading »
The Claremont Hotel & Spa, a fixture in the Berkeley hills since 1915, was part of a luxury hotel group that filed for bankruptcy yesterday. The Claremont and seven other resorts were part of a $6.6 billion acquisition by Morgan Stanley in 2007. When debt of $1.5 billion came due yesterday, lenders foreclosed on five of the properties (three other properties with longer-term debt did not file for Chapter 11 protection).
The lenders, led by hedge fund Paulson & Co, stated in a press release that they intend to work down the debt and position the hotels to benefit as the economy improves. The last few years have been particularly bruising for the luxury end of the travel industry, and the Claremont has suffered from poor occupancy rates.
The Morgan Stanley purchase came right near the top of the market for luxury properties. Although business turned down soon after the acquisition, there was some investment in the Claremont, including a complete revamping of its main restaurant, The Meritage, refurbishment of guest rooms, and the addition of a new children’s pool. … Continue reading »