Loan on Four Seasons Maui transferred after borrower defaults
Bloomberg News Service
A loan on the Four Seasons Resort Maui, a luxury hotel owned by Dell Inc. founder Michael Dell and his family, was transferred to a special servicer after the borrower defaulted, according to Fitch Ratings.
The loan has a balance of $250 million, Fitch said. The Dell family's private investment firm, MSD Capital LP, bought the 380-room property in Wailea, Hawaii, in June 2004 for $280 million, according to Realpoint LLC. The loan has been on a watchlist for default because of declining cash flows, Horsham, Pennsylvania-based Realpoint said in March.
Luxury hotels have been hurt by a decline in business and leisure travel during the U.S. recession. The average daily rate among hotel chains with the costliest rooms fell 16 percent in 2009 from a year earlier to $242.99, according to Smith Travel Research.