Bank of America files notice of default on Ritz-Carlton Highlands Lake Tahoe
UPDATE: 1:15 p.m. Monday, April 26
TRUCKEE, Calif. and#8212; Bank of America has filed a notice of default against the Ritz-Carlton Highlands Lake Tahoe, which opened four months ago near Northstar-at-Tahoe.
Owners East West Partners owes $18.6 million to Bank of America, the lead lender on the Ritz Carlton project, said Blake Riva, managing partner with East West in the Tahoe region. The default involves two loans totaling $157 million.
and#8220;We’re working closely with the bank to address some financing-related matters, and once those are resolved, the outstanding balance will be paid,and#8221; Riva said. and#8220;We hope to resolve this in the next 60 days.and#8221;
The loan payment will be separate from hotel revenue, coming from capital from financial partners, Riva said.
The Ritz-Carlton manages the Northstar property, said Steven Holt, director of public relations for the Ritz, and its management contract won’t be affected by the financial situation.
and#8220;We had an amazing winter season,and#8221; Holt said.
The Ritz-Carlton Highlands, a luxury resort with about 300 employees, temporarily closed its doors April 19, reopening May 10, for cleaning and maintenance during the shoulder season.
Riva said the notice of default is unrelated to East West’s Chapter 11 filing earlier this year on a number of other Tahoe-area properties, not including the Ritz-Carlton.