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WSJ: Owner of Ritz-Carlton Downtown Atlanta Considers Bankruptcy

ATLANTA (Aug. 18, 2010) - Highland Hospitality Corp., owner of the Ritz-Carlton in downtown Atlanta, is contemplating filing for bankruptcy, The Wall Street Journal reports today.

The Chapter 11 filing, if it occurs, would not happen "until at least next month," WSJ reporters Lingling Wei and Kris Hudson say, citing "people familiar with the situation." This comes as Highland Hospitality's creditors angle to gain control of the firm, the WSJ says.

Ironically, the story appears the same day panelists at the Bisnow capital markets event bemoaned at what they perceive to be negative coverage of the city's real estate market receives in the influential newspaper. But, the news is what it is, and it's mostly bad now - to use a much-overused phrase.

This would be an incredible development in across the country, and especially for Atlanta's hospitality industry, which has been wracked by the recession. We'll stay tuned.

National Spotlight Shines on Sea Island

ATLANTA (Aug. 11, 2010) - The pending sale of Sea Island and its Chapter 11 bankruptcy filing are making national news this morning.

The Wall Street Journal prominently played a story about the "glittering resort" on the front of its Money & Investing section. WSJ reporters Carrick Mollenkamp and Lingling Wei are on the tony island, based on the article's Sea Island, Ga., dateline.

Several outlets reported news that Sea Island Co. had called a member meeting for 11 a.m. this morning to announce the sale. The Atlanta Journal-Constitution says Sea Island Chairman Bill Jones sent an e-mail to members last last night after the Journal reported Oaktree Capital and Avenue Capital had agreed to buy the 84-year-old resort for $197.5 million in cash.

The AJC played its story by Scott Trubey, who followed the Sea Island saga closely while at Atlanta Business Chronicle, and Dan Chapman on Page One. And this morning, Atlanta Business Chronicle posted a story saying Sea Island owes at least 1,000 creditors up to $1 billion, citing the bankruptcy filing.

Real Estate Rooster, the online news organization founded by Hardman Knox and Phillip Hight, determined the story warranted a special edition. Rooster crowed with the news at 6:03 a.m. today.

Now the big question is how will operations of The Lodge and The Cloister be affected? Early reports say they won't be. But the big funds buying Sea Island likely will have an eye toward making their investment pay off, and that could lead to some changes.

Either way, it's nice to see commercial real estate news in the limelight (even if it's not great news for Sea Island Co.).