Doral Golf Resort & Spa says its operations will be unaffected by the sale of a loan on its parent company’s corporate debt.
The 693-room hotel, which is hosting the 2011 World Golf Championships-Cadillac Championship in March, is one of eight properties around the United States used as security for the $200 million mezzanine loan that will be auctioned in New York on Jan. 28.
Some of the other properties include Grand Wailea in Maui; the Arizona Biltmore in Phoenix and the Ritz-Carlton and JW Marriott at Grande Lakes in Orlando.
“This is a matter involving the owner of the hotel and the lender,” said hotel sales and marketing director Christopher Bielski.
The hotel will continue to be managed by Marriott under terms of the existing management agreement, he said. The Doral had a lackluster year in 2009 but still eked out an operating profit of $3.2 million, said Thomas Fink, senior vice president of Trepp, which tracks financials of properties backed by securitized loans.
The sprawling resort spent about $4 million improving the property, more than eating up the extra cash and pushing the bottom line into the red.
In 2010, the numbers improved and Trepp forecasts that the Doral will end the year with an operating profit of about $18 million.