Doubletree Berkeley Marina in Default
- Jul 02, 2010
July 2, 2010
By Allison Landa, News Editor
In a sign that hotels may not yet be fully in recovery, the Doubletree Berkeley Marina hotel in Northern California has fallen into mortgage default. The Contra Costa Times reports that the 387-room hotel is still operating as normal.
According to the Times, the Doubletree was purchased in September 2006 by a joint venture of Westmont and Canada-based Cadim Inc., which paid $416 million to buy a real estate investment trust along with its 21-hotel portfolio, including the Doubletree.
At that time, the Times reports, the venture procured a $160 million mortgage from Citigroup Global Markets. On June 25, Citigroup filed a notice of default against the Doubletree as well as the other six hotels for which the loan provides financing: two in Florida, two in North Carolina, one in Michigan and one in Ohio.
Due to decreased travel and tourism stemming from the recession, hotels have been one of the hardest-hit products.