Wednesday, April 21, 2010

Hotel Chains Struggle Under Debt Burden

More than $60 billion of hotel buyouts during the recent real-estate boom saddled several name-brand hotel chains with mountains of debt. Now, many are finding it tough to restructure and reduce those complicated debt burdens with the hotel industry mired in a downturn.


In the latest examples of this, budget-hotel chain Red Roof Inn Inc. and real-estate investment trust Innkeepers USA Trust face losing hotels to their lenders as they scramble to get new terms on past-due debts.

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