With the recession and all of the lay-offs that came with it, many individuals and families have found themselves not traveling and taking vacations as much as they used to. Now, instead of taking that summer trip to Disney World in Orlando, Florida, more are now deciding to either scrap the trip all together or maybe go somewhere that would be less expensive.
However, because people stopped taking vacations and staying out as much as they used to some hotels have ended up taking on an increasing amount of debt. This has resulted in some hotels even having to file for bankruptcy.
Because of the economy — and an alleged restructuring debt deal that fell through — the owners of two Holiday Inn Express hotels in Florida recently filed for bankruptcy. One hotel is in Orlando, while the other is in Orange City.
There are also two different companies involved in these hotels. Global Hotels Group LLC owns the one in Orlando, and AMBE Hotels LLC owns the location in Orange City.
According to sources, the two companies involved, which are also owned by the same partners, owe a combined total of $18.7 million to their primary lender, General Electrical Capital Corp.
The hope is that by filing for Chapter 11 bankruptcy the companies will be able to reorganize debts and pay off what is owed. At the same time, a claim has also been made against the financial advisor who allegedly had not gone through with the debt restructuring deal that was at one point supposedly promised.
Going forward the two hotels will remain open and operating as a reorganization plan is created, and hopefully agreed upon by the creditors involved.
Source: Orlando Sentinel, “Two Holiday Inn hotels file bankruptcy reorganization,” Jason Garcia, Aug. 30, 2011