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alstry (< 20)

Is Extended Stay checking out???



December 08, 2008 – Comments (5)

From the WSJ:

Extended Stay Hotels Inc. is in early talks that could result in turning the hotel chain over to its lenders, a sign of the deep trouble awaiting the commercial real-estate business.

Extended Stay's difficulties signal a new phase of distress in commercial real estate, because they arise directly from the weakening economy. Until now, problems have mostly involved developers unable to obtain refinancing for otherwise healthy operations.

As I signaled earlier.....the credit crisis is going to morph into an economic crisis.  The credit crisis is well under way as fewer and fewer can obtain credit......the economic crisis????  The horses are nearing the starting gate.

Expect this downward spiral to occur in a much more compressed time than the Depression following the 1929 market crash.  Much is Just in Time manufacturing and banking transactions are interrelated and big spider web if you will.  As one side begins the shake, the spider can feel it no matter where she may be weaving.

Right now there is a whole lotta shakin going on.

5 Comments – Post Your Own

#1) On December 08, 2008 at 8:47 AM, alstry (< 20) wrote:

Dow Chemical to cut 5,000 jobs, close 20 plants

20 Plants?????  As the finanicial crisis winds down, the economic crisis is just getting going.

20 Plants!!!! All Alstry can say is WOW!!!!!

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#2) On December 08, 2008 at 9:02 AM, alstry (< 20) wrote:

In addition to closing 20 plants, DOW is idling 180 plants. 

180 plants!!!!!

This layoff represents 11% of DOW's global workforce....DOW is a chemical company, not a financial, or retailer, or builder ...any guesses what it represents of DOW's American workforce???

My friends, we are a lot closer to 20% unemployment than many of you the question is how many are really thinking out there?????

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#3) On December 08, 2008 at 1:46 PM, jegr5347 (< 20) wrote:

New Mortgage Crisis Looms in Commercial SectorBusinesses, Particularly Retailers, Face Some of Same Problems as Residential Market.By Matt Apuzzo  Associated Press, November 29, 2008 WASHINGTON — The full scope of the housing meltdown isn't clear, and already there are ominous signs of a new crisis — one that could turn out the lights on malls, hotels and storefronts nationwide.

Even as the holiday shopping season begins in full swing, the same events poisoning the housing market are now at work on commercial properties, and the bad news is trickling in.   Malls from Michigan to Georgia are entering foreclosure. Hotels in Tucson, Ariz., and Hilton Head, S.C., also are about to default .   That pace is expected to quicken. The number of late payments and defaults will double, if not triple, by the end of next year, according to analysts from Fitch Ratings , which evaluates companies' credit.   "We're probably in the first inning of the commercial mortgage problem," said Scott Tross, a real estate lawyer with Herrick, Feinstein in New Jersey.


Who says the credit crisis is over? Why only have one at a time when you can have two to tango.

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#4) On December 08, 2008 at 2:13 PM, jegr5347 (< 20) wrote:


Homeowners who modified loans are in trouble again
Monday December 8, 1:14 pm ET
By Alan Zibel, AP Real Estate Writer

Banking regulators say more than half of homeowners who modified loans are in default again WASHINGTON (AP) -- More than half of all homeowners who had their loans modified to make the payments more affordable in the first half of the year are already in default again, banking regulators said Monday. Report this comment
#5) On December 08, 2008 at 5:06 PM, hotelguru (< 20) wrote:

I agree with the commenter here:


Why wouldn't CHH go after this portfolio in order to bolster its recent investments in the extended stay segment.  Could this have been the reason for their recent announcement of arelationship with Och-Ziff?

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