LOS ANGELES— Jim Butler, chair of the Global Hospitality Group of the law firm of Jeffer, Mangels, Butler & Marmaro LLP here, is among those believing a growing number of hotel loan defaults are likely to buffet the industry this year. “Because lenders have made recent loans with low loan-to-value and high debt-service coverage, they have less vulnerability,” Butler said. “But it is not out of the question. The industry could see some spectacular hotel-loan failures as 2002 unfolds— perhaps reminiscent of those of a decade ago…if another terrorist event deters travel or worldwide economic conditions do not improve.” As he explained, the likelihood of any grand-scale default depends entirely on [a]hotel’s cost and cash-flow; specifically, on the price at which a troubled hotel was taken over. Indeed, Butler emphasized: “There’s a world of difference between a $20-million and a $200-million cost basis.” Accordingly, Butler and his associates are determined to help prepare hotel owners for such circumstances in the months ahead, specifically via a pair of half-day seminars detailing “Special Assets, Special Problems,” slated for later this month in Dallas and Atlanta. —Michael Billig