The Boston Business Journal reports on a recent Fitch Ratings analysis that the Intercontinental Hotel at 510 Atlantic Avenue will default on a loan.
The InterContinental Boston, burdened by a near $200 million debt load, is performing “significantly below expectations” and is expected to default on a sizable mezzanine loan in the near term, according recent financial filings.
Gary Barnett, the chief executive and founder of Extell Development Co., the InterContinental’s New York-based owner, said the mezzanine loan “is performing and paying interest.” Asked to comment on the hotel’s performance and Fitch’s analysis, Barnett said, “I have no reaction to that. They can write what they want. …I think the hotel is a beautiful hotel.
Tim Kirwan, the InterContinental’s general manager, said the hotel was performing well and was unaffected by the issues surrounding its mezzanine debt.