The servicer overseeing the mortgage handed it off to a special servicer, Capmark Financial Group. The four hotels haven't been able to generate the $44.6 million in annual cash flow necessary to qualify for a one-year extension of the loan according to debt-rating company Realpoint LLC. The four hotels are the Four Seasons in Manhattan, The Four Seasons Biltmore in Santa Barbara, the San Ysidro Ranch in Santa Barbara and Las Ventanas in Baja. Occupancy in the four hotels has declined around ten percent over the past six months.
Warner bought the hotels between 1999 and 2004 after amassing his Beanie-infused fortune. He now must struggle to reach a compromise with the special servicer to revise the mortgage and get an extension. This is something that may be in the best interest of the mortgage holder in a time when more and more hotels are facing difficulties. All the hotels remain open during the crisis. And you can still rent the Ty Warner suite, shown at right, in the New York Four Seasons for around $35,000 a night.