NEWTON, MA— Hospitality Properties Trust (HPT) claimed Fairfield, NJ-based Prime Hospitality Corp. has defaulted on a lease for 24 AmeriSuites hotels after missing a $2-million monthly rent payment due yesterday. According to a Reuters report, HPT leases the hotels to a Prime unit and holds a guarantee for payments. The hotels in question are said to encompass 2,929 rooms across 14 states. Moreover, the REIT reportedly contended the lease and guarantee are secured by $42.1 million of deposits, and Prime’s obligation to maintain the hotels is said to be partially secured by a reserve account with $4.2 million on deposit. It was further noted the company said its default notices— sent today— state that HPT intends to retain the security and guarantee deposits and take control of the improvement-reserve account. SOURCE: Reuters
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