Who owns 6 California luxury resorts? Judge grants Chinese seller a trial date –
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You know there’s trouble in the tourism business when nobody seems to want to own a luxury hotel.
The Chinese government is trying to unload 15 U.S. luxury resorts – including six in California – after seizing a failed insurance company two years ago. Korean real estate investors last September were willing to pay $5.8 billion for the resort collection that includes Montage Laguna Beach, Ritz-Carlton Laguna Niguel in Dana Point, Loews Santa Monica, Ritz-Carlton Half Moon Bay, Four Seasons Hotel in East Palo Alto and Westin St. Francis in San Francisco.
The deal was supposed to close mid-April as bizarre questions swirled about ownership technicalities of some of those resorts. Then Mirae Asset Global Investments, the proposed buyers, last week said they were walking away from the deal, claiming the sellers didn’t execute as promised.
The world’s hotel industry has been slammed by travel fears and business restrictions due to the coronavirus pandemic. And by one metric, Green Street Advisors commercial real estate indexes, hotel values are down 16% in three months.
But the seller insists a deal is a deal and went to federal court in Delaware to force the Koreans to buy. And Friday, according to Law360, a judge ruled the seller’s case is good enough that there should be…
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