Posted on 02/19/2024 4:25:13 PM PST by george76
The Westin Tempe faces a potential foreclosure sale after failing to make its loan payments.
The lender for the 290-room hotel near Seventh Street and Mill Avenue in downtown Tempe filed a notice of trustee sale earlier this week, according Maricopa County records. Such notices inform borrowers and property owners they are facing a potential foreclosure and auction sale.
The notice said that the 18-story hotel, which opened in 2021, will be auctioned off to the highest bidder on April 24 at the Arizona Superior Court building in downtown Phoenix.
The construction loan for the Westin Tempe was issued in 2019 by Dallas-based Hall Structured Finance to an entity connected to Las Vegas-based CAI Investments LLC for $86.5 million. Hall’s president, Mike Jaynes, said at the time that the Tempe hotel’s “premier location in this market” and Westin and Marriott’s loyalty program made the project “a great fit for our loan program.”
Peddle it to the State as housing for illegals?
Seems like a plan...
Has it been taken over by wetbacks? Is it the Wuhan Flu scam?
How can a decent hotel in Ariz. fail?
Fed.gov will pay $$hundreds per day for illegals housing
I am sure someone is planning that with this property
And Westin runs great hotels. We stayed at a Westin Resort in Jasper, Alberta last summer and it was really good.
Sounds like a Fani Willis or any number of crooked black female politicians sacked the accounts.
Thank God the hotel is in Arizona and not NYC………
“18-story hotel”
They could move it to the CDA lakefront and it would fit right in with the building plans!
These go through 2 or three sales before the price is low enough to make money. Early investors take the hit and get a tax deduction.
Hotels are getting too dang expensive for just a decent night’s sleep in clean accommodations. Less Westins and more better red roof inns
When you no longer have to worry about getting votes you need not worry about workers and their fears or problems. The democrats want us all in electric cars and they dont care about anyone’s job.
Yeah I had looked
Beautiful place
Letiesha James/MarxistStalinist Engoron please report to the Vishinsky trial venue for next persecution assignment stat
Soon to be filled with illegals. There are lots of stories of mediocre and failing hotels being propped up with our tax dollars keeping them filled with illegals. As if we are suppose to be thrilled with that. That’s like Prague celebrating that their hotels were filled with Soviet soldiers in 1968.
Yes. I bet they suggested the hotel would be worth more than it is now, when they applied for the construction loans.
There is software akin to a board game, that helps a group of investors to get loans for the development of:
- shopping centers
- motels / hotels
- old folks homes
Notice in the story:
Hall’s president, Mike Jaynes, said at the time that the Tempe hotel’s “premier location in this market” and Westin and Marriott’s loyalty program made the project “a great fit for our loan program.”
Basically, the investor group (not the lender) enters numbers in the game, and the game projects cash flows --- about which, the group always gains, no matter the fate of the property.
The lender usually, also gains. But the lender usually, also has people in charge of lending, who know the game, and know that participation looks good on the lender's books.
What has changed, is that the quality of management of the property, and the quality of some employees. Such that, the physical plant is not maintained, and the staff (esp. the employees who try to take care of the place) are not able to maintain the necessary quality of experience and service that satisfies the label (and its managers).
Usually in the case of a crumbling hotel, in the management level just above the hotel manager, there are a lot of positive words aimed uphill to their bosses, but in contrast, a lot of negative words aimed downhill at the hotel staff. The middle management, thereby attempting to preserve their jobs.
Such that, there is a lot of staff rotation below the level of middle-management, and increasing neglect of the physical plant - maintenance requirements, being ignored.
Hotels have complex computer systems - usually Windows OS computers - that are vulnerable to neglect. Plastic keys and electronic locks for the hotel doors - instead of metal, old-fashioned door keys and locks. The maintenance of the new-edge stuff, requires skill.
The upper management (above the hotel), offer job pay that assumes there is a line of potential staff . . . out the door and all the way past the southern border of the U.S.A. "We can get anybody for peanuts."
But "anybody" means that personnel problems (esp. risk, given backgrounds of abuse, drugs, some jail time) climbs sharply - meaning that managment of employees, becomes a major cost that is not clearly revealed in the books.
So the hotel errodes, and that can happen within a few years - given the cheap construction of the physical plant, and exhaustion of un-maintained equipment (esp. the laundry). Combined with, word gets out that "the management stinks."
Also, guests who would like to stay there, notice that the elevators are still not working, the TV does not work, the bathtub does not drain, the outer door of the hotel - it was jammed 4 months ago and still does not work. And most of the lights have died out, in the big sign aimed toward the highway interchange.
People whom you would think are "in the hotel business," are no longer hotel people. But there are exceptions; there are still some families who own the property and they take care of their assets.
Travel tips: Look for hotels that are concrete and steel. When you check in, and at your room, flush the toilet and run some bath water - testing drainage. Move the pillows aside, pull the bed sheets back, loose, and verify that the bedding is to your liking. Look all around the perimeter of the floor. If anything moves, and you wonder, "What was that?" then get another room.
Important, if you absolutely want to stay at a certain hotel, and do not want to have to go out into the night and find another hotel, and will likely arrive late in the day . . . then:
Call your destination hotel in order to make reservations. If they are busy, call the national reservation system. With a reservation, call back to the hotel, give them your reservation number and tell them, that you will keep them abreast of your travel situation. And DO SO - keep them advised. DO NOT use a third party travel reservation system for a hotel of specific interest to you, when arriving late.
Because hotels routinely over-book, and third party reservations have lowest priority.
The reason for writing so much, above, is because America is not the country it was 25 years ago. There is treachery, and potential for you to not have a safe roof over your head.
Awesome. Thanks!
Can’t they just lower their room rates?
1992-Ross Perot had his ‘convention’ in August. Persuaded the hotels to charge $59 a nite. Back then $100 was the going rate. Now it’s ridiculous seeing Motel 6 for 100.
Thank you for that informative post. It will be of utility to me to keep it in mind as I plan some upcoming travel.
Things used to work in this country. It is more apparent each day, that “working” is becoming more and more spotty.
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