Claremont Hotel's New Owners File Bankruptcy; Operations Unaffected
BERKELEY (CBS 5) -- A luxury resort hotel group that includes the iconic Claremont Hotel & Spa in the Berkeley Hills has filed for bankruptcy protection just a week after being acquired by new owership.
The Claremont, a Bay Area symbol for nearly a century, has 279 guest rooms and features a 20,000-square-foot spa. Hotel management wouldn't comment Wednesday, but its operations appeared unaffected by the bankruptcy filing. Hotel guests and employees also said it seemed to be business as usual.
CNL-AB LLC said it planned to work on refinancing $1.525 billion of debt during the Chapter 11 bankruptcy process, with the hope that the economy rebounds and it can preserve the company's assets.
In addition to the Claremont, the four other resorts listed in the bankruptcy filing were the Arizona Biltmore Hotel in Phoenix; the La Quinta Resort & Club (PGA West) - a Southern California desert oasis once favored by actress Bette Davis; Grand Wailea Resorts Hotel & Spa in Hawaii; and the Doral Golf Resort & Spa in Miami, Florida.
The CNL properties were acquired by the Paulson Group, a New York-based hedge fund, from the investment firm of Morgan Stanley at a foreclosure auction last week.
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