Friday, 16 September 2011 12:57
A $96.6 million loan backed by Manhattan’s Roosevelt Hotel, a high-end property near Grand Central Terminal, was put on watch list by its master servicer this month, according to data compiled by Bloomberg.
The master servicer is Wells Fargo & Co. and the sponsor is PIA Investments Ltd., the investment arm of Pakistan International Airlines, Bloomberg data show. The loan matures on Nov. 9 and was added to the watch list on Sept. 9, according to Morningstar Inc. (MORN)’s Structured Credit Ratings business.
Revenue from the hotel’s 1,015 rooms dropped to $57.7 million in 2009 from $81 million the previous year because of the slowdown in the economy and a decline in business travel demand, Morningstar said in an e-mailed note. Net cash flow decreased to $7.8 million in 2009 and 2010 from $30.1 million in 2008, according to Chicago-based Morningstar.
“We are concerned by the dramatic drop in reported net cash flow,” Morningstar said in the note.