When it rains it pours as a the saying goes, and so does Eagle Hospitality REIT gets more bad news:
Under a US$35 million (S$49.9 million) mortgage loan, the lender Wells Fargo National Association sent an April 18 notice identifying multiple events of default. Wells Fargo had provided the loan on May 21, 2019, in respect of Delta Hotels by Marriott Woodbridge, one of EHT's 18 hotels.
But there's more:
Meanwhile, the master lessees - under EHT sponsor Urban Commons - for 16 out of EHT's 18 hotels have received notices of default from the relevant hotel managers under their hotel management agreements (HMAs).
In addition, of the 16, five hotel managers have also sent termination notices dated April 16 to the respective master lessees under their HMAs, after the master lessees failed to cure their default of maintaining sufficient working capital for the hotels' operations.