The Shore Club No Longer a Sure Thing
Even though The Shore Club in Miami Beach may cost a pretty penny to spend the night (rates in the high season once fetched $1,000 a night), it looks like the hotel's owners are not immune to the recession woes.
While the Shore Club is managed by Morgans Hotel Group, the hotel is owned by Philip Pilevsky and his son, Michael. The Wall Street Journal reports that the Pilevskys have gone delinquent on their $111.5 million securitized mortgage. Earlier this month, the hotel owners even threatened to close the hotel down but later managed to get another loan to pay the payroll and other critical expenses for the hotel. Yet, that still wasn't enough.
The owners explanation for missing the mortgage payment is this:
"A renovation of the hotel is in process, and there is a disagreement between the owner and the loan servicer regarding the servicer’s funding obligations,” [a] spokesperson said.
This does not sound good at all. So will The Shore Club close down? It's doubtful since many hotels that are in foreclosure (or ahem, about to be) want to remain open for business. They still need money coming in after all.
Meanwhile, don't expect bargains at The Shore Club. A standard king room was going for $320 a night over Halloween weekend.
[Photo: Pravin.Premkumar]
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