Insights and trends on developing and ongoing Tucson regional business news.

Piling on La Paloma owner

Michael Hanson’s Transwest Partners/NCH Corporation took another public hit Nov. 18 when Credit Suisse reported the Tucson company is likely in default on a $209 million loan used to purchase the Westin La Paloma Resort and Spa and a Westin in Hilton Head, S.C. 

Advertisement

The loan made in December by J.P. Morgan Chase was backed by the two Westins and was based on projected annual cash flow of $23.7 million, 13 percent higher than what the hotels were doing at the time, according to Credit Suisse.

On Nov. 7, Ashford Hospitality Trust said in a Securities and Exchange Commission filing that Transwest/NCH had defaulted on a $21.5 million mezzanine loan on the hotel properties.