The Ritz-Carlton, Lake Tahoe to have new ownership by month’s end
June 2, 2011
TRUCKEE, Calif. and#8212; The Ritz-Carlton, Lake Tahoe will have new owners by the end of the month.
The lending group, led by Bank of America, will publish a notice of sale on Friday, June 3, that states the sale of the property will be finalized by June 27, confirmed Bank of America representative Bill Halldin in a Thursday interview.
On March 31, 2010, Bank of America filed a notice of default in Placer County involving two loans totaling $157 million against East West Partners, which owned The Ritz-Carlton, Lake Tahoe at the time. In May 2010, the lending group led by Bank of America took over ownership of the property to allow East West time to recover and reorganize. That time period expires June 3.
The notice of sale was and#8220;due to the default situation,and#8221; Halldin said Thursday.
Steven Holt, spokesman for The Ritz-Carlton Hotels of Northern California, said the sale will in no way impact day-to-day operations of the Tahoe luxury hotel, located near Northstar-at-Tahoe Resort.
and#8220;In terms of the guest experience and the hotel management portion, it’s business as usual,and#8221; he said Thursday. and#8220;(The ownership change) simply provides clarity, and The Ritz-Carlton is looking forward to working with the new owner.and#8221;
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The Ritz-Carlton has signed a 25-year agreement to be the management company for the luxury hotel at the popular ski area, but as a business strategy, never owns the physical parts of the hotel and#8212; only the service and employees.
Holt said the default situation did not unduly impact any capital project plans at the 18-month-old hotel, as the infrastructure is essentially complete.
and#8220;Future developments allowed in the master plan are possible depending on the market condition,and#8221; he said.
The Ritz-Carlton, Lake Tahoe employs 400 people, who are active members of the Truckee, North Shore community, Holt said. For example, the hotel will contribute more than 50 volunteers for Truckee Day on Saturday, June 4.
and#8220;Our brandwide Community Footprints program allows our local ladies and gentlemen to direct how we give back to our communities,and#8221; he said.
Holt further said hotel’s business operations benefited from a snow-laden winter and he anticipates a robust summer season.