Eagle Hospitality’s 13-hotel portfolio may be taken over by Blackstone Group unless its US$606 million debt can be restructured.
The Wall Street Journal reported on Friday that according to people familiar with the matter, Blackstone may seek to take over the hotels if Eagle defaults since Blackstone bought Eagle’s mortgage last month.
In an interview with the Journal Marc Beilinson, Eagle Hospitality’s new chief restructuring officer, said that Eagle is studying four options for the portfolio — refinancing its debt, restructuring with mortgage with Blackstone, forfeiting the hotels to Blackstone or seeking Chapter 11 bankruptcy protection.
Eagle Hospitality Properties Trust, Inc., Purchase, New York, owns 13 U.S. hotels including the Hilton Los Angeles North/Glendale & Executive Meeting Center, Embassy Suites San Juan – Hotel & Casino, located in San Juan, Puerto Rico, and the Cincinnati Marriott at RiverCenter.