Ritz-Carlton Lake Las Vegas bought amid financial woes

By Amanda Finnegan

Tuesday, March 24, 2009 | 5:56 p.m.

Village Hospitality LLC has purchased The Ritz-Carlton Lake Las Vegas.

The transaction closed in late February and was announced today.

The prior owner of The Ritz-Carlton Lake Las Vegas sought reorganization in April 2008 to stop foreclosure on a $103 million mortgage. Village Hotel Investors LLC had owned the 15-acre, 349-room resort since it opened in 2003.

The purchase of the property by Village Hospitality marks the end of a 10-month bankruptcy period.

Village Hospitality is managed by the German American Capital Corp., which is based in New York City. Village Hospitality’s assets are managed by Hotel Asset Value Enhancement, also known as hotelAVE. HotelAVE manages the assets of the St. Regis Bora Bora, The Ritz-Carlton Palm Beach, Washington Marriott, as well as others hotels.

Troubles at Lake Las Vegas started in January 2008 when the original developer, Transcontinental Corp., defaulted on its $540 million loan and was foreclosed upon. The Atalon Group, a firm that specializes in turning around financially troubled companies, acquired the development and filed for bankruptcy in July.

The acquisition included 400 acres of undeveloped land, three golf courses, a fourth golf course under development, a few businesses and an interest in the Ritz-Carlton hotel.