Ty Warner Facing Credit Watch on Four Luxury Hotels’ Debt

Four Seasons Biltmore Resort, San Ysidro Ranch among properties on S&P notice over $425 million loan

By William M. Macfadyen, Noozhawk Publisher | Published on 10.27.2009

  • E-mail
  • Print this page Print
  • Post | View Comments (1)
    • Share

A credit watch has been issued for the bond backing a $425 million loan on four hotels owned by Montecito billionaire Ty Warner, including the Four Seasons Biltmore Resort and the San Ysidro Ranch, Noozhawk contributor Jeff Harding reported on his Daily Capitalist blog late Tuesday.

The Montecito hotels and their sister properties — the Four Seasons Hotel New York and Las Ventanas al Paraiso in Los Cabos, Mexico — have a $425 million loan due in January.

According to a Bloomberg report, Standard & Poor’s may downgrade the commercial real estate debt backed by the four luxury hotels because of a drop in cash flow from the properties. Bloomberg said net cash flow was $29.4 million in the 12 months through June — 46 percent below S&P’s expectations and leading to the “credit watch with negative implications” declaration. The bond-rating company said the hotels’ occupancy rate was 58 percent in 2008, down from 69 percent a year earlier.

— Noozhawk publisher Bill Macfadyen can be reached at .(JavaScript must be enabled to view this email address). Follow Noozhawk on Twitter: @noozhawk.

Comments

Noozhawk's comments are moderated, but by posting here you accept your responsibility to follow our rules.

  1. No abusive, defamatory or libelous attacks. In plain English: No personal attacks.
  2. No vulgar or discriminatory language.
  3. If you do not follow these rules, don't be surprised if your comment is removed.
  4. Please use the Report Abuse button on offensive comments.
  5. Share what you know, ask about what you don't. Give us your eyewitness accounts, observations, background and history. Tell us what else you want to know about the story.
  6. Stay on the topic, PLEASE TURN OFF YOUR CAPS LOCK, and forgive people their spelling errors.

Noozhawk's intent is not to limit the discussion of our stories but to elevate it. Thank you for your respectful participation. Click here for our complete Terms of Use.

Comments are moderated, and will not appear until they've been approved.

You must be a registered user to comment. Create a user account

Log in




Auto-login on future visits

Forgot your password?

» Poor Ty on 10.28.09 @ 08:01 PM

Maybe the rooms would fill up if they weren’t $600+ per night. He could lower the rates at the local golf courses he owns while he is at it.


More Local News »

House Poised to Vote on Historic Health-Care Bill Sunday

As Democrats scramble for last-minute votes, Capps touts legislation's reforms

Does Local Currency Make Dollars and Sense for Santa Barbara?

Economic hardships fuel questions but you may not know we've tried it here before

Phil Wyatt Builds High-Tech Company with Low-Key Approach

Wyatt Technology's founder and CEO serves as a steady guide for his staff in pinpointing a niche in laser-based instruments

Santa Barbara Airbus Picks Up and Moves to New Location

The company will have more legroom at its new home on Technology Way in Goleta

Residents Get Look at Master Plan for Santa Barbara

An open house kicks off a public-comment period designed to help shape the future of the city

Weather: Fair 50.0º


© Malamute Ventures LLC 2007-2010 | ISSN No. 1947-6086

Web Design & Development by PixelFive