Some might say that the economy has picked up for the best, but for others—that might not be the same story, especially in the world of luxurious travel and tourism industries. The Ritz Carlton in northern California (Lake Tahoe) is suffering tremendously, due to the effects of the recession that took place in America during the late 2000’s. The Ritz Carlton—recently went into foreclosure, proving that places like Lake Tahoe aren’t doing enough business as predicted.
The Ritz Carlton unfortunately didn’t make the right moves, when it decided to open its door’s back in 2009 (the peak of the economic meltdown). The space, which was located in the base of Northstar-at-Tahoe, was created by a local company—East West Partners, and in March of 2010, they defaulted on a $157M loan (currently owned by Bank of America), that all ended in an auction by the end of June 2010.
The hotel will follow with the Ritz label for a bit longer (duration of the management contracts), presently; the hotel has a staff of 300 plus. The problem that drove the area was the net-worth of $9M to Northstar-at-Tahoe, taking them to the edge of bankruptcy. Yet, this isn’t the only black hole in the region. The Chateau at Heavenly Village has been at a halt with business for almost 4-years now.
Before all this mess, East West developed numerous projects like, Eagle Ranch, Avon’s Westin Riverfront Resort, and the Manor Vail penthouses. East West is associated with projects in all major cities—Vail, Beaver Creek, Summit County, Denver, Lake Tahoe, and Deer Valley in Utah.