Sunday, August 08, 2010

Jingle Mail from Hyatt Hotels

by Calculated Risk on 8/08/2010 07:15:00 AM

From Theo Francis at footnoted.com: Jingle mail in Jersey from Hyatt Hotels ... (ht NorkaWest)

If you’re in Princeton, New Jersey, anytime soon, swing by the Hyatt Regency Princeton. With the Hyatt Hotels (H) quarterly report filed yesterday, it has become a symbol of the financial crisis ... one of Hyatt’s subsidiaries “did not have sufficient cash flow to meet interest payment requirements under its mortgage loan” on the property, in this case a 347-room hotel with a restaurant, bar and comedy club, just a mile from the famous university.
...
“When hotel cash flow became insufficient to service the loan,” the company said in the filing, “HHC notified the lender that it would not provide assistance.” In other words, Hyatt decided to walk away — the equivalent of “jingle mail,” ... In Hyatt’s case, the company “and the lender agreed in principal to effect a deed in lieu of foreclosure transaction.”
Some people are still mailing in the keys!