Dubai's Istithmar loses $282m hotel in auction
Dubai, December 9, 2009
Dubai World's investment arm Istithmar World said on Wednesday it was disappointed it lost its W Hotel in Manhattan in a foreclosure auction on Tuesday, and that the loss was unconnected to the restructuring of its parent company's debt.
'We are disappointed that the lender has chosen this route as we felt that real progress was being made in negotiations with the various lenders to restructure the debt of W Union Square for the future,' a spokesman at Istithmar World said.
'This is totally unconnected to the restructuring of the debt of Istithmar parent Dubai World. Istithmar World is not included in that process,' he added.
Istithmar World, lost the hotel for $2 million, after buying the property for $282 million in 2006, the Wall Street Journal reported earlier.
LEM Mezzanine, a private-equity fund affiliated with real estate investment company Lubert-Adler Partners, won the bid.
Dubai World on November 30 said Istithmar World was among several of its units that would not be part of its $26 billion debt restructuring programme. - Reuters
More Travel, Tourism & Hospitality Stories
- Novotel Abu Dhabi Al Bustan opens
- Top firms plan Dubai World Central move
- Ferrari Land theme park to open in Spain
- Hilton to open 125-room hotel in Saudi
- Abu Dhabi runway closed for upgradation work
- Etihad to fly three times a day to Moscow
- Etihad Regional to lease 4 ATR aircraft
- Etihad soars high with record $6.1bn revenue
- Plaza opens lounges at Bengaluru
- Mövenpick opens organic hotel in Egypt
- Abu Dhabi to expand trade engagement programme
- WTO in deal to promote adventure travel
- Iata cuts global airline profit forecast to $18.7bn
- Gulf Hotels plans $132m waterfront property in Dubai
- Yas Island targets German tourist trade
- Sharq Doha unveils Al Dana Garden
- Beacon technology 'ideal' to aviation industry
- Emergency drill to take place at Amman airport
- JA Resorts to launch high-end resort In Maldives
- $5.3bn hotel projects coming up in Saudi
- Hilton appoints new GM for Alexandria hotel
- Air Arabia opens new sales office in Bahrain
- Lufthansa aims high with 'First Class' service
- Emirates launches new service to Boston
- Dubai Airports 'powers down' for green initiative
- City Seasons opens 5-star hotel in Abu Dhabi
- Etihad alert on fog
- Bahrain F1 visa procedures issued
- Oman Air appoints GSA for Turkey
- $40bn investment in Gulf airports likely