As noted in its first quarter 2020 earnings release, Colony Capital is in default on a significant portion of the hotel portfolio investment-level non-recourse debt as a result of the COVID-19 crisis and its impacts on the hotel industry at large.
“This is a different kind of a crisis,” said Thomas J. Barrack, executive chairman and CEO at Colony Capital. “We’re not concerned about the solvency of our business. We’re concerned about the liquidity of our business. And as we’ve said time and time again, this crisis is about liquidity. And all of the ramifications that we’re dealing with are really focused on liquidity, optionality, adaptability, and we’ll navigate through this.”
The company is in dialogue with all of its lending counterparties and also has begun discussions with advisers to evaluate strategic and financial alternatives to maximize the value of its hospitality assets.
Barrack added, “To navigate this period of disruption, our in
