April 28 2010
The developers of the Ritz-Carlton Highlands hotel at Lake Tahoe have received a default notice from Bank of America Crop., the lead lender in the hotel’s $157 million mortgage.
As reported in the Sacramento Bee: “The hotel is behind on $18.7 million in payments on loans totaling $157 million, according to a default notice filed in Placer County by Bank of America.”
A default notice is a precursor to foreclosure although media reports suggest developer and owner East West Partners will succeed in eventually paying off the past due amount. East West Partners say they are “talking daily” with its lenders to resolve the situation.
East West opened the 170-room Ritz, which also has 23 for-sale residences, last year. The developer has run into difficulties on other projects in Lake Tahoe, seeking bankruptcy protection for four of its luxury-residential projects near the lake earlier this year. The hotel includes ski-in, ski-out access to the slopes, a restaurant created by San Francisco chef Traci des Jardins and a 17,000-square-foot spa and fitness center.