Nicky-O hotels file for bankruptcy (South Beach Miami)
By Anthony Longo 29 03 2007
The South Beach hotel once slated for Nicky Hilton’s debut in the lodging industry has filed for bankruptcy, as its hopes for star-powered profits fall drastically short.
Condo-hotel converter Robert Falor is asking for Chapter 11 bankruptcy protection to reorganize the Breakwater and Edison hotels — adjoining properties that were to be renamed ”Nicky O” after the celebrity socialite.
That deal fell apart last month. A lender suing Falor for $36 million claims the Chicago developer also failed to deliver other star endorsements for the Ocean Drive property.
The suit by an affiliate of Oaktree Capital Management includes a loan agreement requiring Falor to sell condominiums to Scott Storch or Pharrell Williams, both famous hip-hop producers, or another “celebrity reasonably satisfactory to the Mezzanine Lender.”
The bankruptcy filing in Miami marks a dramatic turnaround for a property that only last summer enjoyed extensive coverage in People magazine and approving mentions by David Letterman. And it represents the latest financial setback for Falor, a developer who once led South Florida’s booming condo-hotel trend but left a string of failed partnerships and court fights.
”I would say he was among the top in the country,” said Coral Gables hotel broker Guy Trusty. “I think he has given the condo-hotel model a bad name.” Continued…
Source: Miami Hearld
More on Miami Condos
[...] Via Condo Blog [...]